13D Filing: Prescott Group Capital Management and Modsys International Ltd (NASDAQ:MDSY)

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SCHEDULE 13D/A

This Amendment No. 10 (this Amendment) to the Schedule 13D (the Schedule 13D) is being filed on behalf of
Prescott Group Capital Management, L.L.C., an Oklahoma limited liability company (Prescott Capital), Prescott Group Aggressive Small Cap, L.P., an Oklahoma limited partnership (Prescott Small Cap), Prescott Group Aggressive
Small Cap II, L.P., an Oklahoma limited partnership (Prescott Small Cap II and, together with Prescott Small Cap, the Small Cap Funds), and Mr. Phil Frohlich, the principal of Prescott Capital, relating to Ordinary
shares, NIS 0.01 par value (the Ordinary Shares), of Modsys International Ltd., an Israeli company (the Issuer).

The Ordinary Shares held by Prescott Master Fund reported on this Schedule 13D were previously reported on a Schedule 13G/A filed with the
Securities Exchange Commission on May 11, 2010 and a Schedule 13D filed with the Securities Exchange Commission on June 2, 2010, as subsequently amended on January 6, 2011, again on June 27, 2011, again on December 16, 2011,
again on April 27, 2012, again on September 12, 2012, again on November 26, 2013, again on December 12, 2014, again on January 4, 2016 and again on January 5, 2017. Capitalized terms used herein but not defined have the
respective meanings given to them in the Schedule 13D.

Item 3 of the Schedule 13D is hereby amended as follows:

Item 3.

Source and Amount of Funds

As of April 4, 2017, the Small Cap Funds had
invested $17,291,524 (inclusive of brokerage commissions) in Ordinary Shares of the Issuer. The source of these funds was the working capital of the Small Cap Funds.

Item 4 of the Schedule 13D is hereby amended by adding the following:

Item 4.

Purpose of the Transaction

Item 6 is incorporated herein by reference.

Item 5 of the Schedule 13D is hereby amended as follows:

Item 5.

Interest in Securities of the Issuer

(a) The aggregate percentage of Ordinary
Shares reported to be owned by the Reporting Persons is based upon the sum of (i) 19,086,159 Ordinary Shares outstanding, which is the total number of Ordinary Shares outstanding as of March 8, 2017, as reported in the Issuers most
recent 10-K filed with the Securities Exchange Commission on March 10, 2017, plus (ii) 1,073,653, the number of warrants exercisable to purchase Ordinary Shares held by the Reporting Persons, plus (iii) 216,000, the number of
preferred shares convertible into Ordinary Shares held by the Reporting Persons.

As of April 4, 2017, the Small Cap Funds
beneficially owned approximately 5,685,929 Ordinary Shares, representing approximately 27.9% of the issued and outstanding Ordinary Shares of the Issuer. Such Ordinary Shares consist of (i) 4,396,276 Ordinary Shares, (ii) warrants
exercisable to purchase 1,073,653 Ordinary Shares and (iii) preferred shares convertible into 216,000 Ordinary Shares.