13D Filing: Lone Star Value Management and Crossroads Systems Inc (CRDS)

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D. Lone Star Value Management
(a) As of September 14, 2017, no Shares were held in the Lone Star Value Account. Lone Star Value Management, as the investment manager of Lone Star Value Investors, Lone Star Value Co-Invest I and the Lone Star Value Account, may be deemed the beneficial owner of the 1,707 Shares beneficially owned by Lone Star Value Co-Invest I.
Percentage: Less than 1%
(b) 1. Sole power to vote or direct vote: 1,707
2. Shared power to vote or direct vote: 0
3. Sole power to dispose or direct the disposition: 1,707
4. Shared power to dispose or direct the disposition: 0
(c) Except as otherwise disclosed herein, there have been no transactions in securities of the Issuer by Lone Star Value Management during the past sixty days. On September 14, 2017, the 20,000 Shares previously held in the Lone Star Value Account were transferred directly to the owner of the Lone Star Value Account.
E. Mr. Eberwein
(a) As of September 14, 2017, Mr. Eberwein beneficially owned directly 86,739 Shares. Mr. Eberwein, as the manager of Lone Star Value GP and sole member of Lone Star Value Management, may be deemed the beneficial owner of the (i) 1,707 Shares owned by Lone Star Value Co-Invest I and (ii) 644 Shares owned by Lone Star Value GP.
Percentage: Approximately 7.3%
(b) 1. Sole power to vote or direct vote: 89,090
2. Shared power to vote or direct vote: 0
3. Sole power to dispose or direct the disposition: 89,090
4. Shared power to dispose or direct the disposition: 0
(c) Except as otherwise disclosed herein, there have been no transactions in securities of the Issuer by Mr. Eberwein during the past sixty days. Mr. Eberwein received 86,739 Shares in connection with the Lone Star Value Distribution.

Excluded from the
Reporting Persons’ beneficial ownership is 49,227 Shares that were previously issuable upon the exercise of 644,176 Warrants
owned by Lone Star Value Investors, which are to be cancelled in accordance with Order (I) Authorizing The Debtor To Reject Warrant/Option
Agreements and (II) Estimating Rejection Claims entered on September 7, 2017 under Case No. 17-51926 within the U.S. Bankruptcy
Court for the Western District of Texas pursuant to the Plan as defined and included as an exhibit to the Issuer’s Current
Report on Form 8-K filed on August 14, 2017. The Reporting Persons have been advised by the Issuer’s bankruptcy counsel that
the Warrants are no longer exercisable.

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