Evidence Record

AW Harris Awh 2024 48085 Doc. 120558192

1. On June 28, 2023, a Virginia state court signed the Amended Final Order and Judgment against Cyberlux (and Mark D. Schmidt) in Case No. CL22-3882, in the Circuit Court of the City of...

Type: document
Pages: 7
Lines: 336
SHA-256: 90680ea779c2

DISTIL analysis

DISTIL Run

Profile

Standard

Version

Doc Type

legal_correspondence

Total Nodes

Node Legend

Entity (ENT)

Event (EVT)

Claim (CLM)

Anchor (ANC)

Omission (OMI)

Tension (TEN)

Tell (TEL)

Inference (INF)

Hypothesis (HYP)

Stage 1

Index

Orientation · No nodes

Document Classification

legal_correspondence plaintiff_counsel judgment_enforcement_litigation 2023-06-15 to 2025-05-15

asset_dissipation_riskmultiple_creditorsremoval_jurisdiction_challengesreceivership_request

Analytical Frame

creditor_rights_asset_dissipation

Analytical Summary

This letter from plaintiff's counsel David A. Walton to Judge Michael Gomez addresses enforcement of a judgment against Cyberlux Corporation and Mark D. Schmidt in Harris County. Atlantic Wave Holdings alleges Cyberlux owes over $7.7 million under various judgments, liens, and contractual obligations, and is imminently expecting payment exceeding $20 million from Huntington Ingalls Industries under a February 2025 settlement. The letter asserts Cyberlux has deliberately used jurisdictional challenges to delay collection while positioning assets beyond creditor reach, including potential factoring of $7.3 million to Legalist SPV III. Additional creditors claim over $13.5 million from Cyberlux, creating urgency for immediate receivership to preserve assets upon remand.

Key Points

Atlantic Wave holds Virginia judgment against Cyberlux for minimum $912,000, domesticated in California and Texas
Cyberlux expects payment exceeding $20 million from Huntington Ingalls Industries under February 26, 2025 settlement
Atlantic Wave claims total debt of $7,774,000+ including breach damages, attorney fees, and UCC security interests
Other creditors claim over $13,500,000: Legalist SPV III ($7.3M+), RB Capital ($5.7M), Thin Air Gear ($365K), Aerotek ($235K)
Counsel requests immediate receivership upon remand to prevent asset dissipation

Stage 2

Core — Entities, Events, Claims

26 nodes

ENT-001

Entity

Atlantic Wave Holdings, LLC

Plaintiff and judgment creditor seeking enforcement of Virginia judgment domesticated in Texas

Page 1 — I represent Plaintiffs Atlantic Wave Holdings, LLC, and Secure Community, LLC (Atlantic Wave) in the above-referenced action

ENT-002

Entity

Cyberlux Corporation

Judgment debtor facing multiple creditor claims and enforcement actions totaling over $21 million

Page 1 — Judgment Debtors Cyberlux Corporation and Mark D. Schmidt (Cyberlux)

ENT-003

Entity

Mark D. Schmidt

Individual co-defendant and judgment debtor with Cyberlux Corporation

Page 1 — Judgment Debtors Cyberlux Corporation and Mark D. Schmidt (Cyberlux)

ENT-004

Entity

Huntington Ingalls Industries (HII)

Counterparty to February 2025 settlement with Cyberlux holding payment exceeding $20 million

Page 1 — Cyberlux is in position to receive a substantial sum of money (in excess of $20 million) any day now, from Huntington Ingalls Industries (HII), based on a settlement agreement, effective February 26, 2025, by and between Cyberlux and HII

ENT-005

Entity

Legalist SPV III, LP

Intervening creditor claiming $7,313,627.17 plus daily fees of $4,364.46 under loan agreement

Page 3, 4 — Legalist SPV III, LP filed a Petition in Intervention on February 7, 2025, alleging that Cyberlux is "indebted to Legalist in the amount of $7,313,627.17 with fees accruing at a daily rate of $4,364.46 by virtue of their failure to satisfy their obligations under the Loan Agreement."

ENT-006

Entity

David A. Walton

Attorney representing Atlantic Wave Holdings in judgment enforcement action

Page 1 — I represent Plaintiffs Atlantic Wave Holdings, LLC, and Secure Community, LLC (Atlantic Wave) in the above-referenced action

ENT-007

Entity

Judge Michael Gomez

Presiding judge of 129th Judicial District Court, Harris County, Texas

Page 1 — Honorable Michael Gomez 129th Judicial District Court Harris County Civil Courthouse

ENT-008

Entity

Thin Air Gear, LLC

Creditor with $365,049.42 claim against Cyberlux as of November 2024 with default judgment entered

Page 3 — In Case No. 1:25-cv-00805-GPG-MDB, Thin Air Gear, LLC, v. Cyberlux Corporation (D.Colo.), filed on March 12, 2025, Thin Air Gear, LLC, alleges that Cyberlux is indebted to Thin Air Gear in the amount of $365,049.42 as of November 18, 2024, including a 1.5% late fee per month on past due amounts. (Doc. 1-3, pp. 8-13.) On April 30, 2025, the court clerk entered default against Cyberlux.

ENT-009

Entity

Aerotek, Inc.

Creditor holding $235,411.27 judgment against Cyberlux for payroll expenses

Page 4 — In Case No. 24CV034906-910, Aerotek, Inc. v. Cyberlux Corporation et al., In the General Court of Justice, Superior Court Division, State of North Carolina, filed on October 29, 2024, Aerotek alleges that Cyberlux is indebted to Aerotek for payroll expenses in the amount of $204,705.45, plus interest and attorney fees. (Doc. 1-3, pp. 22-29.) On April 11, 2025, in Wake County Superior Court, an order was entered against Cyberlux Corporation et al. in favor of Aerotek, Inc., in the amount of $235,411.27.

ENT-010

Entity

RB Capital Partners

Creditor claiming $5,686,960 plus interest and attorney fees from Cyberlux

Page 4 — In Case No. 3:24-cv-01434-AJB-DTF, RB Capital Partners v. Cyberlux Corporation et al. (S.D.Cal.), filed on August 12, 2024, RB Capital Partners alleges that Cyberlux is indebted to RB Capital in the amount of $5,686,960, plus interest and attorney fees.

EVT-001

Event

Virginia Amended Final Order and Judgment

Virginia Circuit Court entered judgment against Cyberlux and Schmidt on June 28, 2023, subsequently domesticated in California and Texas

Page 2 — On June 28, 2023, a Virginia state court signed the Amended Final Order and Judgment against Cyberlux (and Mark D. Schmidt) in Case No. CL22-3882, in the Circuit Court of the City of Richmond, Virginia. The Amended Final Order and Judgment has since been domesticated in California state court in January of 2024 and in Texas state court in July 0₺2024.

EVT-002

Event

Settlement Agreement between Atlantic Wave and Cyberlux

June 15, 2023 settlement agreement wherein Cyberlux agreed to pay Atlantic Wave's attorneys' fees for breach and bring stock to Pink Current status by December 31, 2023

Page 2 — On June 15, 2023, Atlantic Wave and Cyberlux entered into a Settlement Agreement in Case No. CL22-3882, in the Circuit Court of the City of Richmond, Virginia, wherein Cyberlux agreed to be "responsible for the payment of [Atlantic Wave's] attorneys' fees and costs in any action caused by the breach of this [Settlement] Agreement."

EVT-003

Event

UCC Financing Statement filings

Atlantic Wave filed UCC-1 forms in Virginia and Texas on July 6, 2023 to perfect security interest in Cyberlux assets including money and accounts receivable

Page 2 — On July 6, 2023, Atlantic Wave filed a UCC Financing Statement (Form UCC1) with the Virginia State Corporation Commission, Office of the Clerk, to perfect Atlantic Wave's security interest in certain collateral of Cyberlux, including but not limited to "money ... [and] accounts receivable and other rights to payment and performance." On July 6, 2023, Atlantic Wave filed a UCC Financing Statement (Form UCC1) with the Texas Secretary of State to perfect Atlantic Wave's security interest in certain collateral of Cyberlux

EVT-004

Event

Cyberlux-HII Settlement Agreement

Settlement agreement effective February 26, 2025 between Cyberlux and Huntington Ingalls Industries for payment exceeding $20 million

EVT-005

Event

Legalist Petition in Intervention

Legalist SPV III filed intervention petition on February 7, 2025 claiming $7.3+ million debt with daily accruing fees

Page 3, 4 — In Cause No. 2024-48085, Atlantic Wave Holdings, LLC, et al. v. Cyberlux Corporation, et al., 129th Judicial District Court, Harris County, Texas, Legalist SPV III, LP filed a Petition in Intervention on February 7, 2025, alleging that Cyberlux is "indebted to Legalist in the amount of $7,313,627.17 with fees accruing at a daily rate of $4,364.46 by virtue of their failure to satisfy their obligations under the Loan Agreement."

EVT-006

Event

Second Removal and Remand

Federal court remanded case on May 14, 2025 and awarded Atlantic Wave attorney fees for responding to second removal attempt

Page 3 — On May 14, 2025, the Texas federal court entered a memorandum and opinion granting "Atlantic Wave's request for an award of the attorney's fees and costs incurred in responding to the second removal."

EVT-007

Event

Thin Air Gear Default Judgment

Court clerk entered default against Cyberlux on April 30, 2025 in Colorado federal case

Page 3 — On April 30, 2025, the court clerk entered default against Cyberlux.

EVT-008

Event

Aerotek Judgment Entry

Wake County Superior Court entered judgment on April 11, 2025 against Cyberlux in favor of Aerotek for $235,411.27

Page 4 — On April 11, 2025, in Wake County Superior Court, an order was entered against Cyberlux Corporation et al. in favor of Aerotek, Inc., in the amount of $235,411.27.

EVT-009

Event

Warehouse Lockout

Landlord locked out Cyberlux from Spring, Texas warehouse facility due to delinquent rent after Cyberlux removed drones

Page 4 — Upon information and belief, Cyberlux is considerably delinquent in paying rent under its lease for the warehouse facility in Spring, Texas, which caused the landlord to lock out Cyberlux from the facility, after Cyberlux removed a material portion of the drones located at the facility.

CLM-001

Claim

Atlantic Wave judgment balance: $912,000 minimum

Outstanding balance under domesticated Virginia judgment after accounting for prior payments, credits, or offsets

Page 2 — The outstanding balance due and owed under the Amended Final Order and Judgment is, at minimum, $912,000, after accounting for any prior payments, credits, or offsets.

CLM-002

Claim

Security interest and lien in all Cyberlux property

Judgment provides agreed security interest and lien in all property of Cyberlux and Schmidt until sums paid, memorialized through UCC-1 filings

Page 2 — The Amended Final Order and Judgment, as agreed to by Cyberlux, also provides that "the parties have agreed to a security interest and lien interest in all property of Defendants [Cyberlux and Mark D. Schmidt] in favor of Plaintiffs [Atlantic Wave and Secure Community, LLC] until all sums are paid, and such security interest may be further memorialized through the filing of appropriate UCC 1 forms and the filing of appropriate Liens."

CLM-003

Claim

Settlement breach attorney fees: $592,000+

Attorney fees and costs incurred by Atlantic Wave due to Cyberlux's breach of Settlement Agreement as of April 24, 2025

Page 2, 3 — As of April 24, 2025, the attorneys' fees and costs incurred by Atlantic Wave caused by Cyberlux's breach of the Settlement Agreement is well in excess of $592,000, and attorneys' fees and costs continue to accrue as a result of Cyberlux's wrongful conduct.

CLM-004

Claim

Stock marketability damages: $6,017,250

Damages from Cyberlux's failure to bring stock to Pink Current status and remedy caveat emptor classification by December 31, 2023

Page 3 — Pursuant to the Settlement Agreement, Cyberlux was contractually obligated, among other obligations, to bring its stock to Pink Current status, make the stock marketable, and to remedy the caveat emptor classification on such stock by December 31, 2023, or be subject to additional liability and damages to Atlantic Wave. Cyberlux did not comply with its contractual obligation, which is now the subject of Case No. CI-24-3910, in the Circuit Court of the City of Richmond, Virginia. The damages caused by Cyberlux's wrongful conduct is in excess of $6,017,250 (calculated based on a 20-day rolling average share price of $.0308577 for 195,000,000 shares).

CLM-005

Claim

Virginia attorney fees award: $9,392.50

Court-ordered attorney fees to be paid by December 27, 2024 which were not paid

Page 3 — On September 10, 2024, the Virginia state court entered an order awarding attorney fees in the amount of $9,392.50 to be paid on or before December 27, 2024, which were not paid.

CLM-006

Claim

Total Atlantic Wave debt: $7,774,000+

Aggregate amount owed by Cyberlux to Atlantic Wave across all judgments, liens, and claims

Page 3 — Based on the foregoing judgment, security interest, liens, and claims, among others, Atlantic Wave contends it is currently owed in excess of $7,774,000

CLM-007

Claim

Aggregate creditor claims: $13,500,000+

Total alleged debt owed by Cyberlux to other creditors based on filed pleadings

Page 4 — On the face of those pleadings, Cyberlux is allegedly indebted to other creditors in an amount in excess of $13,500,000, not including the amount due and owed to Atlantic Wave.

Stage 3

In Situ — Quotations, Tells, Tensions, Questions

7 nodes

QUO-001

Quotation

Federal court on government property seizure

Judge Lee H. Rosenthal's statement that proposed receivership order does not suggest intent to seize U.S. government property

Page 5 — As aptly noted by the Honorable Judge Lee H. Rosenthal: "the proposed [receivership] order does not state, or even suggest, that Atlantic Wave or [the receiver Robert] Berleth intend to seize U.S. government property."

QUO-002

Quotation

Cyberlux admission to federal court

Cyberlux's statement to federal court acknowledging HII payment obligation under subcontract

Page 1 — Judgment Debtors conceded to the Federal Court that "Cyberlux and HII are concluding their obligations under the subcontract, by which Cyberlux will deliver the Federal Government Property (the drones), and HII will pay Cyberlux pursuant to the subcontract."

TEN-001

Tension

Asset protection vs. creditor access

Fundamental conflict between Cyberlux's efforts to shield assets and multiple creditors' enforcement rights

Page 1 — Atlantic Wave contends that Cyberlux's jurisdictional challenges were deliberately calculated to delay or interfere with any efforts to collect on Atlantic Wave's judgment, as well as other creditors' claims or judgments, long enough for Cyberlux to hide or dissipate assets out of the reach of those creditors.

TEN-002

Tension

Competing creditor priority claims

Multiple creditors including Atlantic Wave and Legalist SPV III competing for access to same limited Cyberlux assets

Page 2 — Atlantic Wave asserts it is an interested stakeholder in any payment due and owed to Cyberlux by HII because Cyberlux has not satisfied debts due and owed to Atlantic Wave, in whole or in part, under a valid and enforceable judgment, writs of garnishment, or liens

QST-001

Question

Factoring transaction with Legalist

Whether Cyberlux has actually factored $7.3+ million to Legalist or whether this represents potential risk

Page 1 — There is legitimate risk that Cyberlux is taking active measures to place any such non-exempt assets out of the reach of Atlantic Wave and other creditors, e.g., factoring a large amount of the assets ($7,313,627.17 with fees accruing at a daily rate of $4,364.46).

QST-002

Question

Timing of HII payment

When exactly HII will make payment exceeding $20 million to Cyberlux

Page 1 — Cyberlux is in position to receive a substantial sum of money (in excess of $20 million) any day now, from Huntington Ingalls Industries (HII)

QST-003

Question

Current location of drones

Where drones removed from Spring, Texas warehouse are currently located and whether accessible to creditors

Stage 4

Interpretive — Inferences, Omissions, Patterns

5 nodes

INF-001

Inference

Deliberate delay strategy

Cyberlux's pattern of jurisdictional challenges suggests coordinated strategy to delay creditor collection during critical asset movement period

INF-002

Inference

Imminent asset dissipation risk

Convergence of large incoming payment, multiple creditor claims, removal of physical assets, and pattern of non-payment suggests high probability of asset dissipation

Page 4 — Based on Cyberlux's conduct to date, there is a legitimate and severe risk that if Cyberlux receives money held on behalf of or for the benefit of Cyberlux, which is likely soon pursuant to the agreements between Cyberlux and HII, the money will be dissipated before Atlantic Wave and other creditors are paid or can take any further action to prevent such dissipation by Cyberlux.

INF-003

Inference

Insolvency state

Cyberlux's aggregate liabilities exceeding $21 million against anticipated $20 million payment suggests technical insolvency

Page 1, 4 — On the face of those pleadings, Cyberlux is allegedly indebted to other creditors in an amount in excess of $13,500,000, not including the amount due and owed to Atlantic Wave. [...] Cyberlux is in position to receive a substantial sum of money (in excess of $20 million) any day now

OMI-001

Omission

Cyberlux response to allegations

Letter contains no mention of Cyberlux's substantive response to asset dissipation allegations or proposed payment plan

Page 1 — I represent Plaintiffs Atlantic Wave Holdings, LLC, and Secure Community, LLC (Atlantic Wave) in the above-referenced action and write to briefly address the two failed attempts to remove this enforcement action by Judgment Debtors Cyberlux Corporation and Mark D. Schmidt (Cyberlux).

OMI-002

Omission

Government property specifics

No detailed description of which specific assets are government property vs. Cyberlux non-exempt assets despite this being central issue

Page 5 — the focus of Atlantic Wave's collection efforts is not to seize personal property on which the United States (or anyone else) has or claims a mortgage or other lien as established by competent evidence, but rather to seize personal property of Cyberlux as set forth in the proposed receivership order.

Extracted text

7 pages · 14497 characters

Filing Header

BELLNUNNALLY ATTORNEYS & COUNSELORS

grazie Offen Burgen District Clerk

5/15/2025 11:26 AM Marilyn Burgess - District Clerk Harris County David A. Envelope No. 100874891 TEL: 214.740.1 445 Shanelle Taylor FAX: 214.740 55/15/2025 11:26 AM DWALTON@BELLNUNNALLY.COM

May 15, 2025

VIA EFILE.TXCOURTS.GOV

Honorable Michael Gomez 129th Judicial District Court Harris County Civil Courthouse 201 Caroline, 10th Floor Houston Texas 77002

RE: Cause No. 2024-48085, Atlantic Wave Holdings, LLC, et al. v. Cyberlux Corporation, et al., 129th Judicial District Court, Harris County, Texas.

Dear Judge Gomez:

I represent Plaintiffs Atlantic Wave Holdings, LLC, and Secure Community, LLC (Atlantic Wave) in the above-referenced action and write to briefly address the two failed attempts to remove this enforcement action by Judgment Debtors Cyberlux Corporation and Mark D. Schmidt (Cyberlux). Atlantic Wave contends that Cyberlux's jurisdictional challenges were deliberately calculated to delay or interfere with any efforts to collect on Atlantic Wave's judgment, as well as other creditors' claims or judgments, long enough for Cyberlux to hide or dissipate assets out of the reach of those creditors. Upon information and belief, Cyberlux is in position to receive a substantial sum of money (in excess of $20 million) any day now, from Huntington Ingalls Industries (HII), based on a settlement agreement, effective February 26, 2025, by and between Cyberlux and HII.1 Thus, it is imperative that this Court take all appropriate actions to protect non-exempt assets of Cyberlux, including funds held (or to be paid) by HII on behalf of or for the benefit of Cyberluxyas soon as jurisdiction is formally revested in the Court. There is legitimate risk that Cyberlux is taking active measures to place any such non-exempt assets out of the reach of Atlantic Wave and other creditors, e.g., factoring a large amount of the assets ($7,313,627.17 with fees accruing at a daily rate of $4,364.46).

Judgment Debtors conceded to the Federal Court that "Cyberlux and HII are concluding their obligations under the subcontract, by which Cyberlux will deliver the Federal Government Property (the drones), and HII will pay Cyberlux pursuant to the subcontract." (Case No. 4:25-cv-01689, S.D.Tex., Doc. 9, p. 11 of 17.)

Atlantic Wave asserts it is an interested stakeholder in any payment due and owed to Cyberlux by HII because Cyberlux has not satisfied debts due and owed to Atlantic Wave, in whole or in part, under a valid and enforceable judgment, writs of garnishment, or liens:

On June 28, 2023, a Virginia state court signed the Amended Final Order and Judgment against Cyberlux (and Mark D. Schmidt) in Case No. CL22-3882, in the Circuit Court of the City of Richmond, Virginia. The Amended Final Order and Judgment has since been domesticated in California state court in January of 2024 and in Texas state court in July 0₺2024. The outstanding balance due and owed under the Amended Final Order and Judgment is, at minimum, $912,000, after accounting for any prior payments, credits, or offsets.

The Amended Final Order and Judgment, as agreed to by Cyberlux, also provides that "the parties have agreed to a security interest and lien interest in all property of Defendants [Cyberlux and Mark D. Schmidt] in favor of Plaintiffs [Atlantic Wave and Secure Community, LLC] until all sums are paid, and such security interest may be further memorialized through the filing of appropriate UCC 1 forms and the filing of appropriate Liens."

On July 6, 2023, Atlantic Wave filed a UCC Financing Statement (Form UCC1) with the Virginia State Corporation Commission, Office of the Clerk, to perfect Atlantic Wave's security interest in certain collateral of Cyberlux, including but not limited to "money ... [and] accounts receivable and other rights to payment and performance."

On July 6, 2023, Atlantic Wave filed a UCC Financing Statement (Form UCC1) with the Texas Secretary of State to perfect Atlantic Wave's security interest in certain collateral of Cyberlux, including but not limited to "money ... [and] accounts receivable and other rights to payment and performance."

On June 15, 2023, Atlantic Wave and Cyberlux entered into a Settlement Agreement in Case No. CL22-3882, in the Circuit Court of the City of Richmond, Virginia, wherein Cyberlux agreed to be "responsible for the payment of [Atlantic Wave's] attorneys' fees and costs in any action caused by the breach of this [Settlement] Agreement." As of April 24, 2025, the attorneys' fees and costs incurred by Atlantic Wave caused by Cyberlux's breach of the Settlement Agreement is well in excess of $592,000, and

attorneys' fees and costs continue to accrue as a result of Cyberlux's wrongful conduct.

Pursuant to the Settlement Agreement, Cyberlux was contractually obligated, among other obligations, to bring its stock to Pink Current status, make the stock marketable, and to remedy the caveat emptor classification on such stock by December 31, 2023, or be subject to additional liability and damages to Atlantic Wave. Cyberlux did not comply with its contractual obligation, which is now the subject of Case No. CI-24-3910, in the Circuit Court of the City of Richmond, Virginia. The damages caused by Cyberlux's wrongful conduct is in excess of $6,017,250 (calculated based on a 20-day rolling average share price of $.0308577 for 195,000,000 shares).

On September 10, 2024, the Virginia state court entered an order awarding attorney fees in the amount of $9,392.50 to be paid on or before December 27, 2024, which were not paid.

On May 14, 2025, the Texas federal court entered a memorandum and opinion granting "Atlantic Wave's request for an award of the attorney's fees and costs incurred in responding to the second removal." (Notice of Second Remand Order, dated May 14, 2025, Ex. 2.)

Based on the foregoing judgment, security interest, liens, and claims, among others, Atlantic Wave contends it is currently owed in excess of $7,774,000, and further contends that it is entitled to satisfy the amount with non-exempt assets of Cyberlux, including funds held (or to be paid) by HII on behalf of or for the benefit of Cyberlux.

Not only does Cyberlux owe Atlantic Wave a substantial amount of money, Cyberlux is the subject of several other claims for monies due and owed by Cyberlux:

In Case No. 1:25-cv-00805-GPG-MDB, Thin Air Gear, LLC, v. Cyberlux Corporation (D.Colo.), filed on March 12, 2025, Thin Air Gear, LLC, alleges that Cyberlux is indebted to Thin Air Gear in the amount of $365,049.42 as of November 18, 2024, including a 1.5% late fee per month on past due amounts. (Doc. 1-3, pp. 8-13.) On April 30, 2025, the court clerk entered default against Cyberlux.

In Cause No. 2024-48085, Atlantic Wave Holdings, LLC, et al. v. Cyberlux Corporation, et al., 129th Judicial District Court, Harris County, Texas, Legalist SPV III, LP filed a Petition in Intervention on February 7, 2025,

alleging that Cyberlux is "indebted to Legalist in the amount of $7,313,627.17 with fees accruing at a daily rate of $4,364.46 by virtue of their failure to satisfy their obligations under the Loan Agreement." (Doc. 1-3, pp. 16-19.)

In Case No. 24CV034906-910, Aerotek, Inc. v. Cyberlux Corporation et al., In the General Court of Justice, Superior Court Division, State of North Carolina, filed on October 29, 2024, Aerotek alleges that Cyberlux is indebted to Aerotek for payroll expenses in the amount of $204,705.45, plus interest and attorney fees. (Doc. 1-3, pp. 22-29.) On April 11, 2025, in Wake County Superior Court, an order was entered against Cyberlux Corporation et al. in favor of Aerotek, Inc., in the amount of $235,411.27.

In Case No. 3:24-cv-01434-AJB-DTF, RB Capital Partners v. Cyberlux Corporation et al. (S.D.Cal.), filed on August 12, 2024, RB Capital Partners alleges that Cyberlux is indebted to RB Capital in the amount of $5,686,960, plus interest and attorney fees. (Doc. 1-3, pp. 32-37.) Case 4:25-cv-01689 Document 6 Filed on 04/29/25 in TXSD Page 5 of 11

In Case No. 25CV004246-310, The ARG Group, LLC v. Cyberlux Corporation, In the General Court of Justice, Superior Court Division, State of North Carolina, filed on April 24, 2025, ARG Group alleges that Cyberlux is indebted to ARG Group for amounts due and owed under a distributor partner agreement.

Upon information and belief, Cyberlux is considerably delinquent in paying rent under its lease for the warehouse facility in Spring, Texas, which caused the landlord to lock out Cyberlux from the facility, after Cyberlux removed a material portion of the drones located at the facility.

On the face of those pleadings, Cyberlux is allegedly indebted to other creditors in an amount in excess of $13,500,000, not including the amount due and owed to Atlantic Wave.

Based on Cyberlux's conduct to date, there is a legitimate and severe risk that if Cyberlux receives money held on behalf of or for the benefit of Cyberlux, which is likely soon pursuant to the agreements between Cyberlux and HII, the money will be dissipated before Atlantic Wave and other creditors are paid or can take any further action to prevent such dissipation by Cyberlux. It is imperative that the status quo is preserved

and Cyberlux's deliberate tactics to avoid paying valid and enforceable judgments, writ of garnishment, or liens be brought to an end.

Thus, as soon as jurisdiction is formally revested in this Court, Atlantic Wave respectfully requests that the receivership order previously submitted to the Court on April 1, 2025, be signed instanter to preserve the status quo and minimize any further delay implemented by Cyberlux. Again, to be clear, the focus of Atlantic Wave's collection efforts is not to seize personal property on which the United States (or anyone else) has or claims a mortgage or other lien as established by competent evidence, but rather to seize personal property of Cyberlux as set forth in the proposed receivership order. As aptly noted by the Honorable Judge Lee H. Rosenthal: "the proposed [receivership] order does not state, or even suggest, that Atlantic Wave or [the receiver Robert] Berleth intend to seize U.S. government property." (Notice of Second Remand Order, dated May 14, 2025, Ex. 2, pp. 5-6.) Indeed, Cyberlux's objections to the language in the proposed order are without merit.

At the court's convenience, Atlantic Wave is available for a telephonic (or other remote) status conference to further discuss the foregoing matters. We appreciate your prompt attention to this important matter

Very truly yours, Dank A. Walken

David A. Walton

CERTIFICATE OF SERVICE

I certify that on May 15, 2025, a true and correct copy of this document was served on all parties of record via electronic service from the court's ECF system for registered users, in accordance with Rule 21a of the Texas Rules of Civil Procedure.

By: /s/ David A. Walton

Automated Certificate of eService

This automated certificate of service was created by the efiling system. The filer served this document via email generated by the efiling system on the date and to the persons listed below. The rules governing certificates of service have not changed. Filers must still provide a certificate of service that complies with all applicable rules.

Jemisha Gandhi on behalf of David Walton Bar No. 24042120 jgandhi@bellnunnally.com Envelope ID: 100874891 Filing Code Description: No Fee Documents Filing Description: Letter to Court re Second Remand Order Status as of 5/15/2025 11:32 AM CST

Case Contacts

Name

BarNumber

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David A.Walton

dwalton@bellnunnally.com

5/15/2025 11:26:00 AM

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LaDonna Arey

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Sandra Meiners

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Roxanna Lock

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Shawn Grady

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Jeff Brown

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Bernadette Martin

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Records Department

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Hannah Petrea

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Michael Poynter

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Laurie DeBardeleben

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Micah Jackson

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Lena Brasher

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Frankie Huff

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Alex Pennetti

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Edward W.Gray, Jr.

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Tristian Harris

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Corinne Martin

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Hannah Fischer

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Automated Certificate of eService

Case Contacts

Hannah Fischer

hfischer@thompsoncoburn.com

5/15/2025 11:26:00 AM

SENT

Jocelin A. Tapia

jtapia@thompsoncoburn.com

5/15/2025 11:26:00 AM

SENT

Greg Nieman

gnieman@bellnunnally.com

5/15/2025 11:26:00 AM

SENT

Jemisha Gandhi

jgandhi@bellnunnally.com

5/15/2025 11:26:00 AM

SENT

David M.Keithly

dkeithly@mortensontaggart.com

5/15/2025 11:26:00 AM

SENT

Unofficial Copy Office of Marfied Burgess District Clerk

Original source file

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File: aw-harris-awh-2024-48085-doc-120558192.pdf
Source UID: source:90680ea779c277f7bd0de8c994064ab3f14bb6853e9d6df9f61c968630e1d4b2
Full SHA-256: 90680ea779c277f7bd0de8c994064ab3f14bb6853e9d6df9f61c968630e1d4b2

DISTIL analysis

Extracted text

AW Harris Awh 2024 48085 Doc. 120558192 — Formatted Extract

Original source file