Crossroads Systems Reports 2022 Fiscal First Quarter Report (March 15, 2022)

Summary

A press release dated March 15, 2022, in which Crossroads Systems, Inc. (OTCQX: CRSS) reports results for its fiscal first quarter ended January 31, 2022. Management states it added $42M of impact loans under a new strategy and a relationship with Enhanced Capital. It states that while PPP has ended, the company recognized $50M of the $70M of deferred fees into earnings and has approximately 25% of the loans remaining to process for forgiveness. The release describes a $2 million social impact venture competition with the Community Consulting Lab at Johns Hopkins Carey Business School and the Latino Business Action Network. It reports book value per share of $7.97, rising to $11.68 upon adjustment of deferred income.

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Media and Investor Relations Contact:
dovetail solutions, inc.
James Lawrence
jlawrence@dovetailsolutions.com
(540) 526-6337 (m)

Crossroads Systems Reports 2022 Fiscal First Quarter Report

DALLAS, March 15, 2022 /PRNewswire/ -- 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 first quarter ended January 31, 2022.

Management Commentary
During the first quarter of 2022, we began to execute our new business strategy focused on funding
impact loans across the country. We added $42M of impact loans and are beginning to see accretion to
both interest and fee income. Our goal is to continue to serve our borrowers as we advance and expand
our services across the nation. Our relationship with Enhanced Capital and its ESG lending platform is
transformative for communities and businesses nationwide. As investors and regulatory agencies
continue to expect financial institutions to not only show Environmental, Social, and Governance (ESG)
asset allocation, but to demonstrate concrete impact metrics, we believe that Enhanced Capital’s 20+
year adherence to disciplined credit underwriting and documentable Sustainable Development Goals
will serve us, our bank partners, and our shareholders well; we all win.

As well, we continue to see demand for housing spike across the nation, with inventory, continuing to be
constricting. As housing demand has increased, loan demand continues to rise as well. As we have seen
throughout the past year, inventory has remained a challenge. As we continue to grow our business, more
homes are becoming available. Seeking more available and affordable homes is a place we remain
optimistic.

While PPP has ended, we continue to process the forgiveness of loans. We recognized $50M of the $70M
of deferred fees from the prior period into earnings and currently have approximately 25% of the loans
remaining to process for forgiveness.

Finally, In the spirit of our mission, and our commitment to ESG, last month we launched a $2 million
social impact venture competition in concert with the Community Consulting Lab at Johns Hopkins Carey
Business School and the Latino Business Action Network, a partner of the Business School at Stanford
University. This initiative will inject capital into minority-owned small businesses across the country and
undeniably have a positive impact with those with whom we serve.

2022 Fiscal First Quarter Key Performance Indicators (KPIs)

Highlights for the quarter:
    •   Throughout the first quarter, we’ve continued to see forgiveness of PPP loans. Crossroads has
        recognized $50M into income, approximately 25% of which remains to be forgiven.
    •   Total home sales revenue increased by $500K as the demand for housing continues to grow
        throughout Texas. With this increase, we’ve seen inventory continue to be tight. However, our 90
        day+ delinquency is approximately 0.6%.
    •   Continued execution of expanding our impact loan portfolio across the country and were able to
        add $42M in new impact loans during the quarter.
    •   Book value per share as currently reported is $7.97, upon the adjustment of deferred income, the
        book value will increase to $11.68per share.
    •   Currently, Crossroads has a strong cash position, and we continue to invest in the growth of our
        strategies.

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 involves 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. 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.

©2022 Crossroads Systems, Inc., Crossroads, and Crossroads Systems are registered trademarks of
Crossroads Systems, Inc. All trademarks are the property of their respective owners.


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