Crossroads Systems Q3 FY2021: $486.6M Revenue (+4,638%), ECG Partnership, New CPF CEO

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4514 Cole St. Suite 1600    Dallas, Texas 75205    Main: 214-999-0149   
Crossroads Systems Reports Fiscal Third Quarter 2021 
Financial Results 
Small Business Loan Program Drives Another Period of Record Financial Results, Including 
Nearly $500 Million in Revenue, $165.6 Million in Operating Income or $21.26 Per Share 
 
Strategic Relationship with Enhanced Capital Group to Broaden Company’s Financial Impact 
Footprint to Emerging Communities Across the Country 
 
Former Maryland Deputy Attorney General Thiruvendran “Thiru” Vignarajah Appointed as 
New CEO of Capital Plus Financial Subsidiary 
 
DALLAS, Texas, September 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 
third quarter 2021 ended July 31, 2021. 
Fiscal Third Quarter 2021 Key Performance Indicators (KPIs) 
• Gross origination fees associated with Payment Protection Program (“PPP”) loans 
totaled $465.6 million for the quarter. Net of cost of fees and margin split with loan 
service providers, the Company recorded $178.3 million in operating income from 
origination fees during the third fiscal quarter. 
• Capital Plus Financial, a designated CDFI, issued and approved 389,254 PPP loans to 
small business owners and independent contractors through the program’s term.. An 
additional 82,782 applications were withdrawn due to insufficient data or other reasons 
identified during Capital Plus Financial’s rigorous review process. Of the loans issued 
and approved where identifying information was provided, 87% were disbursed to 
minority small business owners and individuals with an average loan size of $15,900. 
• Added $4.7 million in new single-family mortgage loan balance during the fiscal third 
quarter. 
• The Company’s mortgage portfolio grew to $132.7 million from $125.2 million for the 
comparative period in 2020. 
• The serious delinquency rate as of the period ended July 31, 2021 was 0.79%, compared 
to 1.38% 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 1.74% as 
of the period ended July 31, 2021. The serious delinquency rate is based on the number 

 
 
 
4514 Cole St. Suite 1600    Dallas, Texas 75205    Main: 214-999-0149   
of mortgage loans that are three monthly payments or more past due or in the process of 
foreclosure.  
• Held 102 properties in inventory compared to 119 at the same time in 2020. As of July 
31, 2021, gross inventory was $10.6 million compared to $10.5 million as of July 31, 
2020. The Company is looking to build inventory to not only meet current demand but 
also to plan for renovated housing units going forward. 
Fiscal Third Quarter 2021 Financial Highlights 
• Total revenues increased 4,638% to $486.6 million, up from $10.3 million in the 
comparative 2020 period. The substantial increase in total revenues was primarily due to 
an increase in other revenues during the period. Other revenues include processing fees 
the Company earned from originating PPP loans during the quarter ended July 31, 2021.  
The Company earned fees from the program totaling approximately $465.6 million for 
the quarter. 
• Total property sales income was $6.1 million for the quarter compared to $7.1 million 
for the same period in 2020. The decrease in property sales income for the quarter was 
primarily due to a lack of inventory resulting in a lower number of homes being available 
for sale during the period.   
• Total interest income increased 377% to $14.9 million, up from $3.1 million in the 
comparative 2020 period. The increase in interest income was the result of growth in the 
total mortgage note receivable portfolio during the period and the addition of PPP loans 
to the portfolio. 
• Operating income increased 11,366% to $165.6 million, up from $1.3 million in the same 
period in 2020. The substantial increase in operating income was primarily due to the 
previously disclosed origination fees associated with the Company's participation in the 
PPP loan program. 
• Cash EPS (operating income less income to non-controlling interests) was $21.26 
compared to $0.19 for the comparative period in 2020. The Company booked $38.5 
million of state and federal income tax expense during period. 
• Book value as reported was $61.6 million, or $10.31 per share. Adjusted book value 
including $1.2 million of subordinated debt totaled $62.8 million, or $10.51 per share. 
• As of July 31, 2021, the Company held a cash balance of $291.5 million compared to 
$2.1 million as of October 31, 2020. 

 
 
 
4514 Cole St. Suite 1600    Dallas, Texas 75205    Main: 214-999-0149   
Fiscal Nine Months Ended July 31, 2021 Financial Highlights 
• Total revenues increased 3,435% to $970.5 million, up from $27.4 million in the 
comparative 2020 period. The substantial increase in total revenues was primarily due to 
an increase in other revenues during the period. 
• Total property sales income was $16.7 million compared to $17.7 million for the same 
period in 2020. The decrease in property sales income for the quarter was primarily due 
to fewer completed homes being available for sale during the period. 
• Total interest income increased 155% to $23.8 million, up from $9.3 million in the 
comparative 2020 period. The increase in interest income was the result of growth in the 
total mortgage note receivable portfolio during the period and the addition of PPP loans 
to the portfolio. 
• Operating income increased 7,670% to $317.1 million, up from $4.1 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 $45.48 
compared to $0.51 for the comparative period in 2020. The Company booked $70.0 
million of state and federal income tax expense during the period, of which only $49.0 
million is payable.  The company has fully utilized its non-operating tax losses of $103.0 
million. 
Management Commentary 
“In the fiscal third quarter we continued the important work of bringing financial aid to small 
businesses across the country. More recently, we’ve also taken major steps in laying the 
groundwork for the future direction of our organization,” said Eric A. Donnelly, Chief Executive 
Officer of Crossroads Systems. “With the official conclusion of the Paycheck Protection 
Program in May, we issued and approved nearly 400,000 loans and generated nearly a billion 
dollars in origination fees, both of which are monumental achievements that have irrevocably 
changed our business and impacted the lives of many Americans. From here, we are now 
transitioning to loan forgiveness; to-date we have received approximately 85,000 applications 
and are working diligently in direct partnership with the SBA to address these requests as 
efficiently as we can. 
 
“This generational experience has renewed and expanded our commitment to Crossroads’ core 
mission of providing financial aid and services to minority communities that have been 
historically underbanked and unrepresented. Our recently announced strategic relationship with 
Enhanced Capital Group, a National Impact lender, enables us to further that mission on a much 
greater scale, providing flexible lending solutions to small businesses throughout the U.S., 
making our Capital Plus Financial subsidiary one of the nation’s most impactful CDFI’s. In just 

 
 
 
4514 Cole St. Suite 1600    Dallas, Texas 75205    Main: 214-999-0149   
a few short months we’ve been able to accumulate significant financial resources, build 
meaningful new partnerships, and attract talented leadership, which, together, will allow us to 
accelerate our growth trajectory and realize our vision of a more equitable financial future for 
all.” 
 
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
July 31 
2021
October 31, 
2020
CURRENT ASSETS
Cash and cash equivalents
291,475,025
$     
2,127,059
$     
Restricted cash
284,724,674
       
3,004,051
       
Interest and PPP loan fees receivable
15,201,285
         
930,871
          
Current portion of notes receivable
388,894
              
1,527,234
       
Current portion of other notes receivable
3,685
 
7,014
              
Inventory
10,606,419
         
10,544,236
     
Prepaid expenses and other current assets
305,195
              
411,645
          
Total current assets
602,705,177
       
18,552,110
     
NOTES RECEIVABLE, net of current maturities and allowance of $0
130,339,924
       
127,304,450
   
OTHER NOTES RECEIVABLE, net of current maturities, participations and allowance of $0
1,442,244
           
1,583,761
       
PPP LOAN RECEIVABLES
6,147,231,676
    
- 
GOODWILL
18,566,966
         
18,566,966
     
DEFERRED TAX ASSET
- 
18,300,334
 
OTHER NON-CURRENT ASSETS
132,673
              
- 
TOTAL ASSETS
6,900,418,660
$  
184,307,621
$ 
          LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable
249,095
$ 
  
222,610
$ 
  
Accrued liabilities
254,328,624
       
353,901
          
Escrow liabilities
2,490,500
           
2,886,249
       
   Income tax payable
48,243,336
         
- 
Current portion of credit facilities
26,693,660
         
75,694,845
     
Current portion of other note payable (subordinated)
49,003
 
191,337
          
Current portion of acquisition notes payable
623,793
              
2,495,172
       
Total current liabilities
332,678,011
       
81,844,114
     
CREDIT FACILITIES, net of current maturities
73,281,866
         
39,481,435
     
OTHER NOTE PAYABLE, net of current maturities (subordinated)
1,144,235
           
1,144,234
       
ACQUISITION NOTES PAYABLE, net of current maturities
8,408,912
           
10,582,769
     
PAYROLL PROTECTION PROGRAM LOAN 
376,800
              
376,800
          
FED PPPLF CREDIT FACILITY
6,422,368,421
    
- 
OTHER LONG-TERM LIABILITIES
594,715
              
407,091
          
TOTAL LIABILITIES
6,838,852,960
    
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
3,816,349
           
242,471,412
   
Accumulated deficit
39,692,893
         
(210,057,986)
  
Crossroads Systems, Inc. stockholders' equity
43,515,214
         
32,419,398
     
Non-controlling interests
18,050,485
         
18,051,780
     
TOTAL EQUITY
61,565,699
         
50,471,178
     
TOTAL LIABILITIES AND EQUITY
6,900,418,660
$  
184,307,621
$ 

CROSSROADS SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
The accompanying notes are an integral part of these consolidated financial statements.
July 31, 2021
July 31, 2020
REVENUES
Interest income
23,777,722
$    
9,339,624
$    
Property sales
16,733,791
17,736,312
Other revenue
929,984,144
378,249
Total revenues
970,495,657
    
27,454,185
    
COSTS AND EXPENSES
Interest expense
9,134,509
4,356,322
Cost of properties sold
14,468,546
15,425,606
General and administrative
609,024,279
1,487,181
Salaries and wages
20,731,003
2,103,878
Total costs and expenses
653,358,337
    
23,372,987
    
Income from operations
317,137,320
    
4,081,198
      
OTHER EXPENSES
Interest expense
(372,859)
          
(550,947)
        
Other income/(expenses)
3,447,921
        
- 
Total other expenses
3,075,062
        
(550,947)
        
Income before income tax provision
320,212,382
    
3,530,251
      
INCOME TAX PROVISION
(69,991,591)
     
(448,398)
        
NET INCOME
250,220,791
    
3,081,853
      
Less: net income attributable to non-controlling interests
(469,910)
          
(472,931)
        
NET INCOME ATTRIBUTABLE TO CONTROLLING INTERESTS
249,750,881
$  
2,608,922
$    
Earnings (loss) per share:
Cash income attributable to common shareholders
271,594,104
    
3,057,320
      
Weighted average shaes outstanding
5,971,994
        
5,971,994
      
Cash income per share
45.48
$ 
  
0.51
$ 
  
For the Nine Months Ended 

CROSSROADS SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
The accompanying notes are an integral part of these consolidated financial statements.
July 31, 2021
July 31, 2020
REVENUES
Interest income
14,910,841
$    
3,125,498
      
Property sales
6,092,931
7,132,600
      
Other revenue
465,610,289
12,881
           
Total revenues
486,614,061
    
10,270,979
    
COSTS AND EXPENSES
Interest expense
5,576,284
1,271,583
      
Cost of properties sold
5,391,903
6,298,319
      
General and administrative
290,766,066
513,128
         
Salaries and wages
19,204,171
743,053
         
Total costs and expenses
320,938,424
    
8,826,083
      
Income from operations
165,675,637
    
1,444,896
      
OTHER EXPENSES
Interest expense
(111,250)
          
(155,626)
        
Total other expenses
(111,250)
          
(155,626)
        
Income before income tax provision
165,564,387
    
1,289,270
      
INCOME TAX PROVISION
(38,452,695)
     
(152,446)
        
NET INCOME
127,111,692
    
1,136,824
      
Less: net income attributable to non-controlling interests
(155,773)
          
(157,068)
        
NET INCOME ATTRIBUTABLE TO CONTROLLING INTERESTS
126,955,919
$  
979,756
$       
Earnings (loss) per share:
Cash income attributable to common shareholders
126,955,919
    
1,132,202
      
Weighted average shaes outstanding
5,971,994
        
5,971,994
      
Cash income per share
21.26
$ 
  
0.19
$ 
  
For the Three 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 July 31, 
2021
As of July 31, 
2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
250,220,790
$       
3,081,853
$    
Adjustments to reconcile net income to net cash
used in operating activities:
Loss on derivative related activity
(105,702)
 
(105,702)
         
Stock based compensation
224,697
 
42,496
             
Amortization of deferred financing fees
(132,673)
 
22,993
             
Provision for income taxes
18,300,334
           
448,398
           
Changes in operating assets and liabilities:
Account & Interest receivable
(14,270,414)
          
181
 
Notes receivable (Mortgages, other and PPP)
(6,148,983,964)
     
(5,292,267)
      
Inventory
(62,183)
 
852,188
           
Prepaids and other assets
106,450
 
27,158
             
Accounts payable
26,485
 
70,931
             
Accrued liabilities
302,511,385
         
(13,445)
           
Escrow liabilities
(395,749)
 
(872,724)
         
Net cash used in operating activities
(5,592,560,544)
     
(1,737,940)
      
CASH FLOWS FROM FINANCING ACTIVITIES
Preferred equity contributions
- 
2,500,000
 
Preferred equity dividend distributions
(471,206)
 
(472,931)
         
Common equity distributions
(238,879,760)
        
- 
Paycheck Protection Program loan
- 
376,800
 
Borrowings on credit facilities, net
2,752,674
             
19,157,858
      
Principal payments on credit facilities
(17,953,429)
          
(16,911,620)
    
Principal payments on other notes payable
(142,333)
 
(133,399)
         
Principal payments on acquisition note payable
(4,045,236)
            
(1,224,684)
      
Principal payments on participations in mortgage notes and other receivables
- 
800,085
 
Proceeds from the federal reserve PPP credit facility
6,422,368,421
      
- 
      Net cash provided by financing activities
6,163,629,132
      
4,092,109
        
Net change in cash and cash equivalents and restricted cash
571,068,589
         
421,781
           
Cash and cash equivalents and restricted cash at beginning of period
5,131,110
             
1,656,114
        
Cash and cash equivalents and restricted cash at end of period
576,199,699
$       
2,077,895
$    
SUPPLEMENTAL INFORMATION
Cash paid for interest
4,289,921
$ 
  
5,087,850
$    

CROSSROADS SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
AS OF JULY 31, 2021
The accompanying notes are an integral part of these consolidated financial statements.
Crossroads
Capital Plus
Systems, Inc.
Financial, LLC
Eliminations
Total
          ASSETS
CURRENT ASSETS
Cash and cash equivalents
7,011,736
$      
284,463,289
$   
-
$ 
 
291,475,025
$
   
Restricted cash
- 
284,724,674
 
- 
284,724,674
 
Interest receivable
- 
15,201,285
 
- 
15,201,285
 
Accounts receivable
Current portion of notes receivable
- 
388,894
 
- 
388,894
 
Current portion of other notes receivable
- 
3,685
 
- 
3,685
 
Intercompany receivables
3,143,910
        
290,289,928
       
(293,433,838)
   
- 
Inventory
- 
10,606,419
 
- 
10,606,419
 
Prepaid expenses and other current assets
108,355
           
196,840
 
- 
305,195
 
Total current assets
10,264,001
      
885,875,014
       
(293,433,838)
   
602,705,177
             
NOTES RECEIVABLE, net of current 
- 
130,339,924
 
- 
130,339,924
 
maturities and allowance of $0
- 
- 
- 
OTHER NOTES RECEIVABLE, net of current 
- 
1,442,244
 
- 
1,442,244
 
PPP LOAN RECEIVABLES
- 
6,147,231,676
 
- 
6,147,231,676
 
GOODWILL
18,566,966
      
- 
- 
18,566,966
 
DEFERRED TAX ASSET
- 
132,673
 
- 
132,673
 
INVESTMENT IN SUBSIDIARY
13,386,175
      
- 
(13,386,175)
 
(0)
 
OTHER NON-CURRENT ASSETS
- 
- 
- 
- 
TOTAL ASSETS
42,217,142
$    
7,165,021,531
$  
(306,820,013)
$ 
6,900,418,660
$ 
   
(0)
 
CURRENT LIABILITIES
Accounts payable
-
$ 
 
249,095
$
  
-
$ 
 
249,095
$
   
Accrued liabilities
35,250
             
254,293,374
       
- 
254,328,624
 
Escrow liabilities
- 
2,490,500
 
2,490,500
 
Income taxes payable
48,243,336
      
48,243,336
 
Intercompany payables
290,289,928
    
- 
(290,289,928)
 
- 
Current portion of credit facilities
- 
26,693,660
 
26,693,660
 
Current portion of other note payable (subordinated debt)
- 
49,003
 
- 
49,003
 
Current portion of acquisition notes payable
623,793
           
- 
623,793
 
Total current liabilities
339,192,307
    
283,775,632
       
(290,289,928)
   
332,678,011
             
CREDIT FACILITIES, net of current maturities
- 
73,281,866
 
73,281,866
 
OTHER NOTE PAYABLE, net of current maturities (subordinated)
- 
1,144,235
 
- 
1,144,235
 
ACQUISITION NOTES PAYABLE, net of current maturities
8,408,912
        
- 
- 
8,408,912
 
FEDERAL RESERVE PPPLF CREDIT FACILITY
6,422,368,421
    
6,422,368,421
          
PAYCHECK PROTECTION PROGRAM LOAN
376,800
 
- 
376,800
 
OTHER LONG-TERM LIABILITIES
- 
594,715
 
- 
594,715
 
   TOTAL LIABILITIES
347,601,219
    
6,781,541,669
    
(290,289,928)
   
6,838,852,960
          
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
3,816,347
        
- 
- 
3,816,347
 
Accumulated earnings (deficit) 
(309,206,397)
   
365,429,378
       
(16,530,085)
     
39,692,896
 
   Crossroads Systems, Inc. stockholders' equity
(305,384,078)
   
365,429,378
       
(16,530,085)
     
43,515,215
 
   Non-controlling interests
- 
18,050,485
 
- 
18,050,485
 
TOTAL EQUITY
(305,384,078)
   
383,479,863
       
(16,530,085)
     
61,565,700
 
TOTAL LIABILITIES AND EQUITY
42,217,141
$    
7,165,021,532
$  
(306,820,013)
$ 
6,900,418,660
$ 
   
          LIABILITIES AND EQUITY

CROSSROADS SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED JULY 31, 2021
The accompanying notes are an integral part of these consolidated financial statements.
Crossroads
Capital Plus
Systems, Inc.
Financial, LLC
Total
REVENUES
Interest income
-
$ 
 
23,777,722
$    
23,777,722
$    
Property sales
- 
16,733,791
 
16,733,791
      
Other revenue
- 
929,984,144
 
929,984,144
    
Total revenues
- 
970,495,657
 
970,495,657
    
COSTS AND EXPENSES
Interest expense
- 
9,134,509
 
9,134,509
        
Cost of properties sold
- 
14,468,546
 
14,468,546
      
General and administrative
682,616
           
608,341,663
    
609,024,279
    
Salaries and wages
18,023,645
      
2,707,358
        
20,731,003
      
Total costs and expenses
18,706,261
      
634,652,076
    
653,358,337
    
Income (loss) from operations
(18,706,261)
     
335,843,581
    
317,137,320
    
OTHER EXPENSES
Interest expense
(372,859)
          
- 
(372,859)
 
Other income (expense)
3,447,921
        
- 
3,447,921
 
Total other expenses
3,075,062
        
- 
3,075,062
 
Income (loss) before income tax provision
(15,631,199)
     
335,843,581
    
320,212,382
    
INCOME TAX PROVISION
(69,991,591)
     
- 
(69,991,591)
 
NET INCOME (LOSS)
(85,622,790)
     
335,843,581
    
250,220,791
    
Less: net income attributable to non-controlling interests
- 
(469,910)
 
(469,910)
          
NET INCOME (LOSS) ATTRIBUTABLE TO 
CONTROLLING INTERESTS
(85,622,790)
     
335,373,671
    
249,750,881
    

CROSSROADS SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED JULY 31, 2021
The accompanying notes are an integral part of these consolidated financial statements.
Crossroads
Capital Plus
Systems, Inc.
Financial, LLC
Total
REVENUES
Interest income
-
$ 
 
14,910,841
$    
14,910,841
$    
Property sales
- 
6,092,931
 
6,092,931
        
Other revenue
- 
465,610,289
 
465,610,289
    
Total revenues
- 
486,614,061
 
486,614,061
    
COSTS AND EXPENSES
Interest expense
- 
5,576,284
 
5,576,284
        
Cost of properties sold
- 
5,391,903
 
5,391,903
        
General and administrative
437,142
           
290,328,924
    
290,766,066
    
Salaries and wages
17,873,703
      
1,330,468
        
19,204,171
      
Total costs and expenses
18,310,845
      
302,627,579
    
320,938,424
    
Income (loss) from operations
(18,310,845)
     
183,986,482
    
165,675,637
    
OTHER EXPENSES
Interest expense
(111,250)
          
- 
(111,250)
 
Total other expenses
(111,250)
          
- 
(111,250)
 
Income (loss) before income tax provision
(18,422,095)
     
183,986,482
    
165,564,387
    
INCOME TAX PROVISION
(38,452,695)
     
- 
(38,452,695)
 
NET INCOME (LOSS)
(56,874,790)
     
183,986,482
    
127,111,692
    
Less: net income attributable to non-controlling interests
- 
(155,773)
 
(155,773)
          
NET INCOME (LOSS) ATTRIBUTABLE TO 
CONTROLLING INTERESTS
(56,874,790)
$   
183,830,709
$  
126,955,919
$  

 
 
Fiscal Third Quarter  
Shareholder Report for  
the Three Months Ended  
July 31, 2021 
Crossroads Systems, Inc. 
Delaware  
 
 
 
 
74-284664   
(State of Incorporation)  (IRS Employer Identification No.) 
 
8214 Westchester Drive 
Suite 950 
Dallas, TX 75225 
(Address of principal executive office) 
 
(214) 999-0149 
(Company’s telephone number) 
 
Common Stock 
$0.001 Par Value 
Trading Symbol: CRSS 
Trading Market: OTCQB 
 
75,000,000 Common Shares Authorized  
 
5,971,994 Shares Issued and Outstanding as of July 31, 2021 
 
 

 
 
Dear Shareholder:  
 
As I write to you today, we find ourselves seemingly on the other side of what has been an 
eventful 18 months for everyone. And while we are closely monitoring developments and 
the potential impact from the surging COVID-19 Delta variant, it does seem like there’s 
light at the end of the tunnel to eventually return to some semblance of normalcy. Stepping 
back to a year and a half ago, this was not the case. Nearly all of us in some capacity were 
either fearing for our friends, families, or at-risk loved ones, and many others were also 
forced to contend with a potential loss of livelihood. 
 
As an enterprise equally devoted to providing positive social impact as well as financial 
performance, we recognized that we had a role to play in helping Americans navigate 
through this generational crisis and that we were well equipped as a community 
development financial institution, or CDFI, to lead the charge for the Paycheck Protection 
Program’s second draw. With the program’s conclusion in May, we now have an 
opportunity to take a look back at what we were able to accomplish in that time and also 
to evaluate what’s next. 
 
In just a few short months, along with our community bank referral partners and partners 
at Blueacorn, we issued and approved nearly 400,000 loans and generated nearly a billion 
dollars in origination fees, both of which are monumental achievements that have 
irrevocably changed our business and impacted the lives of many Americans.  
 
Equally important to this program were our efforts to ensure that the funds were dispersed 
to the people and businesses that met all necessary qualifications. We have gone through 
painstaking and patient detail with borrowers to try and give them every opportunity to 
provide the required information which is a differentiated approach than most banks would 
be willing to undertake. At the same time, our approval process was both rigorous and 
secure. Though we leaned heavily on our loan service providers for support on the front 
end, we were thorough in reviewing applications on the back end, using four layers of 
identity verification in comparison to most lenders’ one or two. This investment in KYC 
or ‘know your customers’ substantially reduced fraud, which is evidenced by a negligible 
rate of active fraud cases of less than .0025%. Throughout the term of the program, we 
cumulatively detected, reported, and stopped over 80,000 applications that were withdrawn 
due to insufficient data or other reasons. 
 
From here, we are now transitioning from loan origination to forgiveness. Today, we have 
already received approximately 85,000 applications for forgiveness and are working 
diligently in direct partnership with the SBA to address these requests as efficiently as we 
can. With the SBA’s direct forgiveness online portal and dedicated helpline now available 
for any previously issued loans under $150,000, we plan to direct our portfolio to these 
resources and are aiming to have outstanding requests materially addressed over the next 
90 days. We are grateful to the SBA for their partnership and assistance in making this 

 
 
process as seamless as possible for such a large number of requests. To date, not a single 
one of the applicants we have worked with has been turned away. The work does not simply 
stop at loaning money to businesses in need; we must find ways to educate, mentor, and 
ensure these businesses stabilize and thrive once the economy recovers. 
 
While the SBA loan program has admittedly taken much of our focus over the last few 
months, throughout this process we have remained committed to our core mission of 
providing housing and loan opportunities to the low-income, largely Hispanic population 
in Texas. Like the rest of the U.S. housing market, Texas residential real estate remains 
extremely tight; inventory is hard to come by and houses that do arrive on the market are 
sold quickly. In response, we have been actively evaluating new markets for growth and 
expanding our geographic footprint. In McAllen, TX, one of our relatively recent 
expansion markets, we’ve made strides with new home development activity, and we are 
moving quickly to add more inventory. Still, we hope to build a larger base of homes in 
the quarters ahead and will be watching the market closely to identify potential 
opportunities that meet our criteria.   
 
With the government lending program entering its sunset period, and our housing business 
well managed and capitalized, we’ve had an opportunity to reevaluate what the future of 
Crossroads might look like going forward. What we’ve long known is that the US banking 
system is a woefully inefficient at servicing independent contractors. On both ends of the 
spectrum, either a self-employed person trying to get a mortgage or a gig economy worker 
just trying to get a small loan, the current infrastructure is not doing enough to support 
these people. Over the last few years, Capital Plus Financial has developed into a go-to 
lender for housing loans for the underbanked population in Texas. While we knew we were 
making a difference – helping many families secure their first homes and providing 
opportunities for communities that so often faced closed doors when they tried to make a 
way for themselves – we’ve also been aware that there was potential for so much more. 
And thanks to the massive success of the SBA program, we’re now in a position to do 
more. 
 
Looking ahead, we are very excited about the next chapter for Crossroads.  We see 
substantial opportunity to represent the premier, diversified impact credit platform in the 
public markets in Capital Plus Financial.  As one of the only publicly traded non-bank 
CDFIs, our PPP experience has catapulted us from a single asset and regional focus to a 
national platform with hundreds of thousands of borrowers across multiple lines of 
business. As we’ve noted before, we focus our business on a “double bottom line” result: 
creating significant, tangible impact across all we do, and generating strong returns on 
tangible common equity for our shareholders.  There are firms that attempt the former, and 
those that attempt the latter, but we believe our combination of both will distinguish us in 
the quarters and years to come. 
 
 

 
 
Relatedly, this morning we announced a strategic relationship with Enhanced Capital 
Group (“ECG”), a national impact lender, to deploy flexible capital to women and minority 
owned small businesses, small businesses located in underserved areas, and to renewable 
energy and community redevelopment projects across the country.  Like CPF, Enhanced 
Capital Group has multi-decade track record achieving double bottom line results across a 
wide array of end markets. Under this partnership, both Crossroads and ECG will be 
combining their respective impact footprints and diversifying product and service offerings 
to deliver capital to areas including underserved and low-income communities at an 
unprecedented scale. In practice, ECG will originate its future production on our balance 
sheet in exchange for a management fee and incentive fee, providing a win-win for both 
organizations. 
 
We expect ECG-originated assets, in aggregate and with proper financing in place, to yield 
in excess of 20% return on equity for Crossroads, while dramatically expanding our impact 
footprint.  ECG will also help CPF raise additional low cost funding in the debt and 
preferred equity markets, which should allow ECG to tap into its billion dollar pipeline to 
deploy a diversified pool of impact products across the U.S. Put plainly, this agreement 
sets up our CPF subsidiary as one of the nation’s most impactful, institutionally-backed 
CDFI’s in the nation. 
 
At a high level, partnering with ECG will enable us to further our mission on a much greater 
scale, geographically and thematically, providing flexible lending solutions to small 
businesses throughout the U.S. Whereas our ability to reach the underbanked community 
was previously centralized to strategic locales in the state of Texas with a specific 
demographic makeup, the ECG partnership allows us to expand our reach to much of the 
continental United States; ECG and its affiliates have deployed approximately $4 billion 
since inception, with employees in 10 states and investments in 37, including Washington 
D.C. and Puerto Rico. Expanding our reach to new markets is an important step in our 
mission to help a larger segment of the population. 
 
To aid in CPF’s expanded mission, we’ve appointed former Maryland Deputy Attorney 
General Thiruvendran “Thiru” Vignarajah as CEO. Thiru is a talented operator with a 
world-class background and a passion for solving the issue of inequity in the financial 
system and being a champion for the less fortunate. I look forward to working with him 
closely as we aim to become a market-leading, ethically mandated private credit provider. 
 
With this agreement now in place, we intend to explore uplisting onto a national exchange 
in coming quarters. The Crossroads story and mandate has no doubt broadened; we can 
now provide aid and services on a national level. Coupled with the financial strength of our 
operations, the timing is right for us to increase our access to institutional capital and to tell 
our story to a larger audience that’s now aligned with our future growth plans. I look 
forward to sharing further updates in the near future. 
 

 
 
In just a few short months we’ve been able to accumulate significant financial resources, 
build meaningful new strategic partnerships, and attract talented leadership, which, 
together, will allow us to accelerate our growth trajectory and realize our vision of a more 
equitable financial future for all. 
 
 
Saludos Cordiales,  
 
Eric A. Donnelly

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