Evidence Record
Exhibit 3
Pursuant to Modification No. 4 to Subcontract No. P000043846 (the "Agreement") by and between HIl Mission Technologies Corp. ("HII") and Cyberlux Corporation ("Cyberlux"), and in accordance with Section 5(f) of the Agreement, this letter...
DISTIL analysis
DISTIL Run
Profile
Standard
Version
1
Doc Type
Certification Letter - Creditor Obligations
Total Nodes
35
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
Certification Letter - Creditor Obligations Cyberlux Corporation to HII Mission Technologies Corp. Defense subcontracting, creditor certification, financial distress 2025-05-30
financial_distresslitigation_referenceddisputed_amountssettlement_negotiations
Analytical Frame
Contractual compliance documentation revealing financial liabilities
Analytical Summary
This May 30, 2025 certification letter from Cyberlux Corporation to HII Mission Technologies discloses creditor obligations totaling approximately $13.4 million pursuant to Subcontract Modification No. 4. The document reveals significant financial distress including a $7.76M debt to Legalist SPV III, ongoing litigation resulting in a $912K judgment, and multiple creditors in settlement discussions. Notably, Cyberlux disputes a $1.445M garnishment summons as exceeding the actual judgment amount, with several liability amounts explicitly marked as estimates pending adjudication. The certification indicates ongoing settlement negotiations with multiple creditors and explicitly states zero liability to ARG Group, suggesting selective disclosure compliance.
Key Points
- Total certified creditor obligations approximately $13.4 million as of May 30, 2025
- Largest obligation: $7.76M to Legalist SPV III including accrued interest (as of April 30, 2025)
- Active litigation: $912K judgment to Atlantic Wave Holdings and Secure Community
- Cyberlux disputes $1.445M garnishment summons as exceeding actual adjudicated judgment
- Multiple creditors in active settlement discussions with estimated amounts
- Zero liability explicitly stated for ARG Group, LLC
Stage 2
Core — Entities, Events, Claims
22 nodes
ENT-001
Entity
Cyberlux Corporation
Cyberlux Corporation, defense contractor operating as debtor entity with significant financial obligations
Page 2 — Cyberlux Corporation ("Cyberlux")
ENT-002
Entity
HII Mission Technologies Corp.
HII Mission Technologies Corp., prime contractor receiving creditor certification from Cyberlux
Page 2 — HIl Mission Technologies Corp. ("HII")
8350 Broad St., Suite 1400,
McLean, VA 22102
ENT-003
Entity
Larson Jay Isely
Larson Jay Isely, Chief Operating Officer of Cyberlux signing the certification
Page 2 — Larson Jay Isely
Chief Operating Officer
ENT-004
Entity
Legalist SPV III, LP
Legalist SPV III, LP, largest creditor of Cyberlux with $7.76M obligation including accrued interest and fees
Page 2 — · Legalist SPV III, LP- $7,762,932.96 including accrued interest and fees (as of April 30, 2025)
ENT-005
Entity
Atlantic Wave Holdings, LLC and Secure Community, LLC
Atlantic Wave Holdings, LLC and Secure Community, LLC, creditors holding $912K judgment against Cyberlux
Page 2 — · Atlantic Wave Holdings, LLC and Secure Community, LLC: Judgement of $912,000.001
ENT-006
Entity
Thin Air Gear
Thin Air Gear, creditor owed approximately $390K in estimated settlement amount
Page 2 — · Thin Air Gear: approximately $390,000.002
ENT-007
Entity
AeroTek, Inc.
AeroTek, Inc., creditor owed approximately $200K to $250K in estimated settlement amount
Page 2 — · AeroTek, Inc .: approximately $200,000 to $250,0003
ENT-008
Entity
ARG Group, LLC
ARG Group, LLC, entity explicitly certified as being owed zero by Cyberlux
Page 2 — . ARG Group, LLC: $0. There is no amount due ARG Group from Cyberlux
ENT-009
Entity
RB Capital Partners
RB Capital Partners, creditor owed approximately $4.1M based on settlement discussions
Page 2 — . RB Capital Partners: approximately $4, 100,0004
ENT-010
Entity
Circuit Court of Fairfax County, Virginia
Circuit Court of Fairfax County, Virginia, court issuing garnishment summons to HII
Page 2 — 1 Cyberlux notes the $1.445M Garnishment Summons from the Circuit Court of Fairfax County, Virginia
presented to HII on or around March 11, 2025
EVT-001
Event
Creditor certification to HII - May 30, 2025
Cyberlux certifies creditor obligations to HII pursuant to Subcontract Modification No. 4, Section 5(f)
Page 2 — 30 May 2025
HII Mission Technologies Corp.
Subject:
Certification of creditor amounts owed
Pursuant to Modification No. 4 to Subcontract No. P000043846 (the "Agreement") by and between HIl
Mission Technologies Corp. ("HII") and Cyberlux Corporation ("Cyberlux"), and in accordance with Section
5(f) of the Agreement, this letter certifies to the amounts Cyberlux owes to the following creditors:
EVT-002
Event
Garnishment summons to HII - March 11, 2025
Circuit Court of Fairfax County presented $1.445M garnishment summons to HII regarding Cyberlux obligations
Page 2 — 1 Cyberlux notes the $1.445M Garnishment Summons from the Circuit Court of Fairfax County, Virginia
presented to HII on or around March 11, 2025
EVT-003
Event
Judgment against Cyberlux - $912K
Atlantic Wave Holdings and Secure Community obtained $912K judgment against Cyberlux
Page 2 — · Atlantic Wave Holdings, LLC and Secure Community, LLC: Judgement of $912,000.001
EVT-004
Event
HII request for certification - May 28, 2025
HII sent letter to Cyberlux on May 28, 2025 requesting creditor certification
Page 2 — Reference:
May 28, 2025 Letter from HII to Cyberlux
CLM-001
Claim
Legalist debt: $7,762,932.96
Cyberlux owes Legalist SPV III, LP exactly $7,762,932.96 including accrued interest and fees as of April 30, 2025
Page 2 — · Legalist SPV III, LP- $7,762,932.96 including accrued interest and fees (as of April 30, 2025)
CLM-002
Claim
Atlantic Wave/Secure Community judgment: $912K
Cyberlux has $912,000 judgment obligation to Atlantic Wave Holdings, LLC and Secure Community, LLC
Page 2 — · Atlantic Wave Holdings, LLC and Secure Community, LLC: Judgement of $912,000.001
CLM-003
Claim
Thin Air Gear estimated debt: ~$390K
Cyberlux owes approximately $390,000 to Thin Air Gear based on preliminary settlement conversations
Page 2 — · Thin Air Gear: approximately $390,000.002
2 Not adjudicated; amount owed reflects Cyberlux's expectations following preliminary conversations
between the parties around a settlement.
CLM-004
Claim
AeroTek estimated debt: $200K-$250K
Cyberlux owes approximately $200,000 to $250,000 to AeroTek, Inc. based on ongoing settlement conversations
Page 2 — · AeroTek, Inc .: approximately $200,000 to $250,0003
3 Not adjudicated; amount owed reflects Cyberlux estimate as settlement conversations are ongoing.
CLM-005
Claim
ARG Group: Zero liability
Cyberlux certifies zero amount owed to ARG Group, LLC
Page 2 — . ARG Group, LLC: $0. There is no amount due ARG Group from Cyberlux
CLM-006
Claim
RB Capital Partners estimated debt: ~$4.1M
Cyberlux owes approximately $4,100,000 to RB Capital Partners based on settlement discussions regarding payment timing
Page 2 — . RB Capital Partners: approximately $4, 100,0004
4 Not adjudicated; amount owed reflects Cyberlux estimation based on settlement discussions, particularly
around timing of payments.
CLM-007
Claim
Garnishment summons exceeds judgment
Cyberlux asserts the $1.445M garnishment summons exceeds the actual $912K judgment, with the difference representing unadjudicated claims
Page 2 — 1 Cyberlux notes the $1.445M Garnishment Summons from the Circuit Court of Fairfax County, Virginia
presented to HII on or around March 11, 2025 is for an amount that is greater than the judgement amount
included herein. The difference relates to amounts that are still unadjudicated and have not been awarded to
the plaintiffs by a court of competent jurisdiction.
CLM-008
Claim
Expected final payment below garnishment amount
Cyberlux believes final adjudication will result in aggregate payments less than the $1.445M garnishment summons
Page 2 — Cyberlux believes that any final adjudication of the claims
will result in aggregate payments that are less than the Garnishment Summons.
Stage 3
In Situ — Quotations, Tells, Tensions, Questions
7 nodes
QUO-001
Quotation
Zero liability assertion - ARG Group
Direct certification language explicitly stating no obligation to ARG Group
Page 2 — . ARG Group, LLC: $0. There is no amount due ARG Group from Cyberlux
TEN-001
Tension
Garnishment vs. judgment discrepancy
Tension between $1.445M garnishment summons served to HII and $912K certified judgment amount
Page 2 — 1 Cyberlux notes the $1.445M Garnishment Summons from the Circuit Court of Fairfax County, Virginia
presented to HII on or around March 11, 2025 is for an amount that is greater than the judgement amount
included herein. The difference relates to amounts that are still unadjudicated and have not been awarded to
the plaintiffs by a court of competent jurisdiction.
TEN-002
Tension
Adjudicated vs. estimated obligations
Multiple creditor amounts marked as 'not adjudicated' estimates contrast with single adjudicated judgment
Page 2 — 2 Not adjudicated; amount owed reflects Cyberlux's expectations following preliminary conversations
between the parties around a settlement.
3 Not adjudicated; amount owed reflects Cyberlux estimate as settlement conversations are ongoing.
4 Not adjudicated; amount owed reflects Cyberlux estimation based on settlement discussions
QST-001
Question
Why zero liability to ARG Group?
What is the relationship or prior claim history with ARG Group that warranted explicit mention of zero liability in certification?
Page 2 — . ARG Group, LLC: $0. There is no amount due ARG Group from Cyberlux
QST-002
Question
Basis for settlement amount estimates?
What methodology or agreement framework supports the estimated settlement amounts for Thin Air Gear, AeroTek, and RB Capital Partners?
Page 2 — 2 Not adjudicated; amount owed reflects Cyberlux's expectations following preliminary conversations
between the parties around a settlement.
3 Not adjudicated; amount owed reflects Cyberlux estimate as settlement conversations are ongoing.
4 Not adjudicated; amount owed reflects Cyberlux estimation based on settlement discussions, particularly
around timing of payments.
QST-003
Question
Unadjudicated claims composition?
What specific claims constitute the $533K difference between the $912K judgment and $1.445M garnishment summons?
Page 2 — The difference relates to amounts that are still unadjudicated and have not been awarded to
the plaintiffs by a court of competent jurisdiction.
QST-004
Question
Contractual trigger for certification?
What conditions in Modification No. 4, Section 5(f) triggered the requirement for creditor certification at this time?
Page 2 — Pursuant to Modification No. 4 to Subcontract No. P000043846 (the "Agreement") by and between HIl
Mission Technologies Corp. ("HII") and Cyberlux Corporation ("Cyberlux"), and in accordance with Section
5(f) of the Agreement, this letter certifies to the amounts Cyberlux owes to the following creditors:
Stage 4
Interpretive — Inferences, Omissions, Patterns
6 nodes
INF-001
Inference
Financial distress pattern
Total certified obligations of approximately $13.4M suggest significant financial distress requiring contractual disclosure to prime contractor
Page 2 — · Legalist SPV III, LP- $7,762,932.96 including accrued interest and fees (as of April 30, 2025)
· Atlantic Wave Holdings, LLC and Secure Community, LLC: Judgement of $912,000.001
· Thin Air Gear: approximately $390,000.002
· AeroTek, Inc .: approximately $200,000 to $250,0003
. RB Capital Partners: approximately $4, 100,0004
INF-002
Inference
Garnishment motivated HII request
The March 11, 2025 garnishment summons to HII likely prompted the May 28, 2025 request for creditor certification
Page 2 — 1 Cyberlux notes the $1.445M Garnishment Summons from the Circuit Court of Fairfax County, Virginia
presented to HII on or around March 11, 2025
Reference:
May 28, 2025 Letter from HII to Cyberlux
INF-003
Inference
Settlement strategy over litigation
Cyberlux appears to prefer settlement negotiations over litigation, with three creditors in active settlement discussions
Page 2 — 2 Not adjudicated; amount owed reflects Cyberlux's expectations following preliminary conversations
between the parties around a settlement.
3 Not adjudicated; amount owed reflects Cyberlux estimate as settlement conversations are ongoing.
4 Not adjudicated; amount owed reflects Cyberlux estimation based on settlement discussions
INF-004
Inference
ARG Group prior claim resolution
Explicit mention of zero liability to ARG Group suggests prior claim, dispute, or inquiry that has been resolved or dismissed
Page 2 — . ARG Group, LLC: $0. There is no amount due ARG Group from Cyberlux
OMI-001
Omission
Creditor list completeness unclear
No statement indicates whether listed creditors represent complete obligations or only those meeting specific criteria under Section 5(f)
Page 2 — Pursuant to Modification No. 4 to Subcontract No. P000043846 (the "Agreement") by and between HIl
Mission Technologies Corp. ("HII") and Cyberlux Corporation ("Cyberlux"), and in accordance with Section
5(f) of the Agreement, this letter certifies to the amounts Cyberlux owes to the following creditors:
OMI-002
Omission
No settlement timeline disclosed
Document provides no estimated dates for settlement completion with three ongoing negotiations
Page 2 — 2 Not adjudicated; amount owed reflects Cyberlux's expectations following preliminary conversations
between the parties around a settlement.
3 Not adjudicated; amount owed reflects Cyberlux estimate as settlement conversations are ongoing.
4 Not adjudicated; amount owed reflects Cyberlux estimation based on settlement discussions, particularly
around timing of payments.
Extracted text
2 pages · 2279 charactersEXHIBIT 3
Filed 08/04/25
CYBERLU Harnessing the Future
CYBERLUX DEFENSE
30
May 2025 HII Mission Technologies Corp. 8350 Broad St., Suite 1400, McLean, VA 22102 Attention: Mr. Tim McAtee, Sr. Director, Subcontracts and Procurement
Subject:
Certification of creditor amounts owed
Reference:
May 28, 2025 Letter from HII to Cyberlux
Dear Mr. McAtee.
Pursuant to Modification No. 4 to Subcontract No. P000043846 (the "Agreement") by and between HIl Mission Technologies Corp. ("HII") and Cyberlux Corporation ("Cyberlux"), and in accordance with Section 5(f) of the Agreement, this letter certifies to the amounts Cyberlux owes to the following creditors:
· Legalist SPV III, LP- $7,762,932.96 including accrued interest and fees (as of April 30, 2025)
· Atlantic Wave Holdings, LLC and Secure Community, LLC: Judgement of $912,000.001
· Thin Air Gear: approximately $390,000.002
· AeroTek, Inc .: approximately $200,000 to $250,0003
. ARG Group, LLC: $0. There is no amount due ARG Group from Cyberlux
. RB Capital Partners: approximately $4, 100,0004
We trust that you find this certification in order. Should you have any questions, please do not hesitate to contact the undersigned directly.
Sincerely, Larson by Sealy
Larson Jay Isely Chief Operating Officer
1
Cyberlux notes the $1.445M Garnishment Summons from the Circuit Court of Fairfax County, Virginia presented to HII on or around March 11, 2025 is for an amount that is greater than the judgement amount included herein. The difference relates to amounts that are still unadjudicated and have not been awarded to the plaintiffs by a court of competent jurisdiction. Cyberlux believes that any final adjudication of the claims will result in aggregate payments that are less than the Garnishment Summons.
2
Not adjudicated; amount owed reflects Cyberlux's expectations following preliminary conversations between the parties around a settlement.
3
Not adjudicated; amount owed reflects Cyberlux estimate as settlement conversations are ongoing.
4
Not adjudicated; amount owed reflects Cyberlux estimation based on settlement discussions, particularly around timing of payments.
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