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

UNITED STATES

SECURITIES AND EXCHANGE
COMMISSION

Washington, D.C. 20549

SCHEDULE 13D

(Rule 13d-101)

INFORMATION TO BE INCLUDED
IN STATEMENTS FILED PURSUANT

TO § 240.13d-1(a)
AND AMENDMENTS THERETO FILED PURSUANT TO

§ 240.13d-2(a)

(Amendment No. 10)¹

Crossroads Systems, Inc.

(Name
of Issuer)

Common Stock, par value $0.001
per share

(Title of Class of Securities)

22765D209

(CUSIP Number)

JEFFREY E. EBERWEIN

LONE STAR VALUE MANAGEMENT, LLC

53 Forest Avenue, 1st Floor

Old Greenwich, Connecticut 06870

(203) 489-9500

(Name, Address and Telephone Number of Person

Authorized to Receive Notices
and Communications)

September 14, 2017

(Date of Event Which Requires
Filing of This Statement)

If
the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule
13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following
box ¨.

Note:  Schedules
filed in paper format shall include a signed original and five copies of the schedule, including all exhibits.  See
§ 240.13d-7 for other parties to whom copies are to be sent.

1
The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to
the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided
in a prior cover page.

The information required
on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities
Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject
to all other provisions of the Act (however, see the Notes).

The following constitutes
Amendment No. 10 to the Schedule 13D filed by the undersigned (“Amendment No. 10”).  This Amendment No. 10
amends the Schedule 13D as specifically set forth herein.

Responses to each
item below are incorporated by reference into each other item, as applicable.

Item 2 is hereby amended and restated
to read as follows:

(a)  This statement is filed by:

Each of the foregoing
is referred to as a “Reporting Person” and collectively as the “Reporting Persons.” Each of the Reporting
Persons is party to that certain Joint Filing Agreement, as further described in Item 6.  Accordingly, the Reporting
Persons are hereby filing a joint Schedule 13D.

(b)  The
address of the principal office of each of the Reporting Persons is 53 Forest Avenue, 1st Floor, Old Greenwich, Connecticut
06870.

(c)  The principal business of each of Lone Star Value Investors and Lone Star Value Co-Invest I is investing in securities.
The principal business of Lone Star Value GP is serving as the general partner of each of Lone Star Value Investors and Lone Star
Value Co-Invest I. The principal business of Lone Star Value Management is serving as the investment manager of Lone Star Value
Investors, Lone Star Value Co-Invest I and the Lone Star Value Account. The principal occupation of Mr. Eberwein is serving as
the manager of Lone Star Value GP and the sole member of Lone Star Value Management.

(d)  No Reporting Person has, during the last five years, been convicted in a criminal proceeding (excluding traffic violations
or similar misdemeanors).

(e)  Other than as set forth herein, no Reporting Person has, during the last five years,
been party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding
was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject
to, federal or state securities laws or finding any violation with respect to such laws. Lone Star Value Management and Mr. Eberwein
are each subject to a Securities and Exchange Commission (“SEC”) administrative order, dated February 14, 2017 (File
No. 3-17847), relating to alleged violations of Section 13(d) of the Securities Exchange Act of 1934 (the “Exchange Act”)
and the rules promulgated thereunder, including failing to disclose the members of a stockholder group, and further allegations
that Mr. Eberwein violated Section 16(a) of the Exchange Act and the rules promulgated thereunder, including failing to timely
file initial statements of beneficial ownership on Form 3 and changes thereto on Form 4. Without admitting or denying any violations,
(i) Lone Star Value Management agreed to cease and desist from committing or causing any violations of Section 13(d) of the Exchange
Act and Rules 13d-1 and 13d-2 promulgated thereunder, and paid a civil penalty of $120,000 to the SEC and (ii) Mr. Eberwein agreed
to cease and desist from committing or causing any violations of (x) Section 13(d) of the Exchange Act and Rules 13d-1 and 13d-2
promulgated thereunder and (y) Section 16(a) of the Exchange Act and Rules 16a-2 and 16a-3 promulgated thereunder, and paid a civil
penalty to the SEC in the amount of $90,000.

(f)  Mr. Eberwein is a citizen of the United States of America.

Item 3 is hereby amended and restated to
read as follows:

The 1,707 Shares
directly owned by Lone Star Value Co-Invest I were acquired upon the transfer of such Shares from Mr. Eberwein, who is the sole
investor and sole owner of Lone Star Value Co-Invest I.

The 644 Shares
directly owned by Lone Star Value GP were acquired upon a pro rata in-kind distribution from Lone Star Value Investors to its partners.

The 86,739 Shares
directly owned by Mr. Eberwein were acquired upon a pro rata in-kind distribution from Lone Star Value Investors to its partners.

Items 5(a)-(c) are hereby amended and restated
to read as follows:

The aggregate percentage of Shares reported
owned by each person named herein is based upon 1,225,472 Shares outstanding as of May 25, 2017, as reported in the Issuer’s
Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on May 25, 2017.

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.

The Reporting Persons,
as members of a “group” for the purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, may
be deemed the beneficial owner of the Shares directly owned by the other Reporting Person.  Each Reporting Person disclaims
beneficial ownership of such Shares except to the extent of his or its pecuniary interest therein.

Item 6 is hereby
amended to add the following:

On
September 14, 2017, the Reporting Persons entered into a Joint Filing Agreement in which the Reporting Persons agreed to the joint
filing on behalf of each of them of statements on Schedule 13D with respect to securities of the Issuer, to the extent required
by applicable law.  A copy of this agreement is attached as exhibit 99.1 hereto and is incorporated herein by reference.

Item 7 is
hereby amended to add the following exhibit:

SIGNATURES

After reasonable inquiry and to the best
of his knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete
and correct.

Dated:  September 14, 2017