Evidence Record

Exhibit 7

1. DEBTOR'S NAME: Provide only one Debtor name (1a or 1b) (use exact, full name; do not omit, modify, or abbreviate any part of the Debtor's name); if any part of the Individual Debtor's...

Type
exhibit
Court
EDVA
Case
HII v. Cyberlux interpleader
Docket
3:25-cv-00483
Pages
9
Lines
446
SHA-256
546520c532d2

DISTIL analysis

DISTIL Run
Profile
Standard
Version
1
Doc Type
email_chain_with_ucc_exhibits
Total Nodes
34
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
email_chain_with_ucc_exhibits legal_counsel_multiple_parties secured_transactions_priority_dispute 2025-04-24 to 2025-05-19
priority_disputeucc_filing_evidenceattorney_client_correspondencecompeting_security_interests
Analytical Frame
litigation_discovery_exhibit
Analytical Summary
This litigation exhibit comprises an email chain between counsel for Atlantic Wave Holdings, Huntington Ingalls Industries, and other parties, concerning competing secured creditor claims against Cyberlux Corporation's accounts receivable. Atlantic Wave's counsel David Walton asserts priority over Legalist SPV III based on earlier UCC-1 perfection dates: Atlantic Wave perfected its security interest by July 2023 in Virginia, Texas, and North Carolina, while Legalist filed UCC-1 forms in North Carolina only in April 2024 (Cyberlux) and July 2024 (Mark Schmidt). The emails reveal Atlantic Wave claims over $7.7 million owed under a settlement agreement providing security interests in all Cyberlux assets including IP, subsidiaries, contractual rights, and accounts receivable. A key factual assertion is that Legalist's security interest could not arise until April 2024 when Cyberlux sold receivables from a drone contract to Legalist—eight months after Atlantic Wave's perfection. The exhibits include two Legalist UCC-1 financing statements listing "all assets" as collateral.
Key Points
  • Atlantic Wave claims priority over Legalist based on perfecting security interest by July 2023 in Virginia, Texas, and North Carolina
  • Legalist filed UCC-1 forms only in North Carolina: April 2024 for Cyberlux, July 2024 for Mark Schmidt
  • Atlantic Wave asserts Legalist's security interest could not arise until April 2024 when Cyberlux sold drone contract receivables
  • Atlantic Wave claims over $7.7 million owed, with minimum $912,000 outstanding under Amended Final Order and Judgment
  • Settlement agreement grants Atlantic Wave security interest in all Cyberlux assets including IP, subsidiaries, contractual rights, and accounts receivable
  • HII counsel seeks clarification on amount secured by Atlantic Wave's claimed security interest
Stage 2
Core — Entities, Events, Claims
20 nodes
ENT-001
Entity
Atlantic Wave Holdings, LLC
Atlantic Wave Holdings, LLC - secured creditor claiming priority security interest in Cyberlux Corporation assets perfected by July 2023
Page 2, 3, 4, 5, 6 — Atlantic Wave Holdings, LLC, concerning its claim to funds held on behalf of or for the benefit of Cyberlux Corporation
ENT-002
Entity
Legalist SPV III, LP
Legalist SPV III, LP - competing secured creditor that filed UCC-1 financing statements in North Carolina in April and July 2024
Page 2, 8, 9 — Legalist SPV III, LP
ENT-003
Entity
Cyberlux Corporation
Cyberlux Corporation - debtor entity subject to competing security interests from Atlantic Wave and Legalist
Page 2, 3, 4, 5, 6, 8 — CYBERLUX CORPORATION
ENT-004
Entity
Mark D. Schmidt
Mark D. Schmidt - individual debtor with address in Pittsboro, NC, subject to Legalist UCC-1 filing July 2024
Page 2, 9 — 1b. INDIVIDUAL'S SURNAME SCHMIDT FIRST PERSONAL NAME MARK ADDITIONAL NAME(S)/INITIAL(S) D.
ENT-005
Entity
David A. Walton
David A. Walton - Partner at Bell Nunnally & Martin LLP representing Atlantic Wave Holdings
Page 2, 3, 4, 6 — David A. Walton <dwalton@bellnunnally.com>
ENT-006
Entity
Clark J. Belote
Clark J. Belote - attorney at Kaufman & Canoles representing Huntington Ingalls Industries (HII)
Page 2, 3, 4, 5 — Clark J. Belote Kaufman & Canoles, P.C. clark.belote@kaufcan.com
ENT-007
Entity
Huntington Ingalls Industries
Huntington Ingalls Industries (HII) - entity holding funds subject to competing claims, represented by Kaufman & Canoles
Page 2, 3, 4, 5 — Letter to HII re Claim to Funds
EVT-001
Event
Atlantic Wave UCC-1 perfection by July 2023
Atlantic Wave perfected its security interest in Cyberlux assets by July 2023 in Virginia, Texas, and North Carolina
Page 2 — Atlantic Wave perfected its security interest in July 2023, at the latest, in Virginia, Texas, and North Carolina
EVT-002
Event
Legalist UCC-1 filing for Cyberlux - April 2024
Legalist SPV III, LP filed UCC-1 financing statement against Cyberlux Corporation in North Carolina on April 1, 2024
Page 8 — File Number: 20240038686M Date Filed: 4/1/2024 7:44:00 PM
EVT-003
Event
Legalist UCC-1 filing for Schmidt - July 2024
Legalist SPV III, LP filed UCC-1 financing statement against Mark D. Schmidt in North Carolina on July 15, 2024
Page 9 — File Number: 20240084460A Date Filed: 7/15/2024 8:27:00 AM
EVT-004
Event
Amended Final Order and Judgment - June 28, 2023
Court issued Amended Final Order and Judgment on June 28, 2023, providing for security interest in all Cyberlux property in favor of Atlantic Wave
Page 4 — The June 28, 2023 Amended Final Order Judgment says: "That the parties have agreed to a security interest and lien interest in all property of Defendants in favor of Plaintiffs 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."
EVT-005
Event
Cyberlux sale of drone contract receivables to Legalist
Cyberlux sold receivables from a drone contract to Legalist in April 2024, forming the basis of Legalist's security interest
Page 2 — upon information and belief, the basis of Legalist's security interest did not and could not arise until April 2024 at the earliest when Cyberlux sold receivables from the drone contract to Legalist
EVT-006
Event
Walton letter to HII - April 24, 2025
David Walton sent initial letter to HII counsel asserting Atlantic Wave's claim to funds held for Cyberlux's benefit
Page 6 — From: David A. Walton Sent: Thursday, April 24, 2025 4:03 PM To: clark.belote@kaufcan.com Subject: Atlantic Wave_Letter to HII re Claim to Funds
EVT-007
Event
Email exchange on secured amounts - May 2025
Email exchange between counsel on May 15-19, 2025, clarifying the amount Atlantic Wave claims is secured by its security interest
Page 2, 3, 4, 5 — From: Belote, Clark J. < clark.belote@kaufcan.com> Sent: Monday, May 19, 2025 1:15 PM
CLM-001
Claim
Atlantic Wave priority over Legalist
Atlantic Wave contends it has priority over Legalist because it perfected its security interest by July 2023, more than eight months before Legalist filed in April 2024
Page 2 — Yes, Atlantic Wave contends it has priority over Legalist. Atlantic Wave perfected its security interest in July 2023, at the latest, in Virginia, Texas, and North Carolina, whereas the file-stamps on Legalist's UCC-1 forms, attached hereto, are in April 2024 (as to Cyberlux) and July 2024 (as to Schmidt) in North Carolina only.
CLM-002
Claim
Legalist security interest arose April 2024
Atlantic Wave asserts that Legalist's security interest could not arise until April 2024 when Cyberlux sold drone contract receivables to Legalist
Page 2 — upon information and belief, the basis of Legalist's security interest did not and could not arise until April 2024 at the earliest when Cyberlux sold receivables from the drone contract to Legalist-that is, more than eight months after Atlantic Wave had perfected its security interest.
CLM-003
Claim
Atlantic Wave owed over $7.7 million
Atlantic Wave claims it is owed in excess of $7,774,000, with a minimum of $912,000 outstanding under the Amended Final Order and Judgment
Page 5 — In your April 24, 2025 letter, you stated that Atlantic Wave is "owed in excess of $7,774,000" (emphasis added) and that the "[t]he outstanding balance due and owed under the Amended Final Order and Judgment is, at minimum, $912,000."
CLM-004
Claim
Settlement agreement grants comprehensive security interest
Atlantic Wave claims the settlement agreement grants it a security interest in all Cyberlux assets including IP, subsidiaries, contractual rights, accounts receivables, and drone sales
Page 3 — Moreover, the settlement agreement explicitly provides: "Defendants [Cyberlux & Schmidt] agree and grant to Plaintiff [Atlantic Wave & Secure Community] a full security interest and lien interest in all of Defendants' assets, including but not limited to IP, subsidiaries, contractual rights, accounts receivables, drone sales, etc., which may, in Plaintiff's sole discretion, be memorialized through the filing of UCC-1 forms and Liens."
CLM-005
Claim
Cyberlux defaulted on settlement agreement
Atlantic Wave contends Cyberlux has defaulted on the settlement agreement in several respects, permitting enforcement of the security interest
Page 3 — Atlantic Wave contends that Cyberlux has defaulted on the settlement agreement in several respects as set forth in prior communications and filings, which permits Atlantic Wave to enforce the security interest (authorized by the settlement agreement) against Cyberlux on the collateral or assets described in the UCC-1 forms.
CLM-006
Claim
Garnishment summons amount $1.44 million
A garnishment summons references $1.44 million as the face amount of Atlantic Wave's claim
Page 3, 4 — does AW contend that its claimed security interest in the accounts receivable of Cyberlux has priority over the claimed security interest of Legalist in Cyberlux's accounts receivable? [...] I wanted to understand whether Atlantic Wave contends that its debt or claims against Cyberlux are secured in an amount over and above the $1.44mm on the face of the garnishment summons.
Stage 3
In Situ — Quotations, Tells, Tensions, Questions
8 nodes
QUO-001
Quotation
Settlement agreement security interest provision
Direct quote from settlement agreement regarding comprehensive security interest granted to Atlantic Wave
Page 3 — "Defendants [Cyberlux & Schmidt] agree and grant to Plaintiff [Atlantic Wave & Secure Community] a full security interest and lien interest in all of Defendants' assets, including but not limited to IP, subsidiaries, contractual rights, accounts receivables, drone sales, etc., which may, in Plaintiff's sole discretion, be memorialized through the filing of UCC-1 forms and Liens."
QUO-002
Quotation
Amended Final Order security interest language
Quote from June 28, 2023 court order authorizing security interest in all Cyberlux property
Page 4 — "That the parties have agreed to a security interest and lien interest in all property of Defendants in favor of Plaintiffs 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."
TLL-001
Tell
UCC-1 filing locations and timing
Atlantic Wave explicitly states the jurisdictions and timing of its UCC-1 perfection compared to Legalist's later filings
Page 2 — Atlantic Wave perfected its security interest in July 2023, at the latest, in Virginia, Texas, and North Carolina, whereas the file-stamps on Legalist's UCC-1 forms, attached hereto, are in April 2024 (as to Cyberlux) and July 2024 (as to Schmidt) in North Carolina only.
TLL-002
Tell
Collateral description as 'all assets'
Both Legalist UCC-1 forms describe the collateral identically as 'All assets' without further specification
Page 8, 9 — 4. COLLATERAL: This financing statement covers the following collateral: All assets
TLL-003
Tell
Settlement agreement includes additional recovery provisions
Atlantic Wave emphasizes the settlement agreement provides for recovery beyond the judgment amount, including attorneys' fees, costs, and damages for stock status failures
Page 3 — The settlement agreement between Cyberlux and Atlantic Wave provides for more than just the actual amount owed under the Amended Final Order and Judgment, for example, it provides Atlantic Wave the right to repayment of attorneys' fees and costs in any action caused by a breach of the settlement agreement, and damages associated with the failure to bring Cyberlux's stock to Pink Current status and to remedy the caveat emptor classification on such stock.
TEN-001
Tension
Priority dispute over accounts receivable
Fundamental tension between Atlantic Wave and Legalist over which party has priority in Cyberlux accounts receivable based on competing perfection dates
Page 3 — Just to clarify one more thing: does AW contend that its claimed security interest in the accounts receivable of Cyberlux has priority over the claimed security interest of Legalist in Cyberlux's accounts receivable?
TEN-002
Tension
Secured amount ambiguity
Tension between different stated amounts Atlantic Wave claims: garnishment summons shows $1.44 million, but Atlantic Wave asserts over $7.7 million owed
Page 4, 5 — I wanted to understand whether Atlantic Wave contends that its debt or claims against Cyberlux are secured in an amount over and above the $1.44mm on the face of the garnishment summons. [...] In your April 24, 2025 letter, you stated that Atlantic Wave is "owed in excess of $7,774,000"
QST-001
Question
Actual secured amount unclear
HII counsel seeks clarification on what dollar amount Atlantic Wave contends is actually secured by its security interest against Cyberlux accounts receivable
Page 5 — Can you confirm what dollar amount Atlantic Wave contends is secured by a security interest of Atlantic Wave's against the accounts receivable of Cyberlux?
Stage 4
Interpretive — Inferences, Omissions, Patterns
6 nodes
INF-001
Inference
Multi-jurisdiction filing strategy
Atlantic Wave's filing in three jurisdictions (Virginia, Texas, North Carolina) suggests strategic perfection across multiple potential asset locations, while Legalist filed only in North Carolina where Cyberlux is located
Page 2 — Atlantic Wave perfected its security interest in July 2023, at the latest, in Virginia, Texas, and North Carolina, whereas the file-stamps on Legalist's UCC-1 forms, attached hereto, are in April 2024 (as to Cyberlux) and July 2024 (as to Schmidt) in North Carolina only.
INF-002
Inference
Legalist acquired existing receivables
The statement that Legalist's security interest arose when Cyberlux 'sold receivables' in April 2024 suggests a receivables purchase or factoring arrangement rather than a traditional loan with security interest
Page 2 — upon information and belief, the basis of Legalist's security interest did not and could not arise until April 2024 at the earliest when Cyberlux sold receivables from the drone contract to Legalist
INF-003
Inference
HII as neutral stakeholder
HII's position as recipient of competing claims suggests it holds funds (likely contract payments) and seeks to determine the proper recipient among competing creditors
Page 2, 4, 5 — Letter to HII re Claim to Funds [...] Can you confirm what dollar amount Atlantic Wave contends is secured by a security interest of Atlantic Wave's against the accounts receivable of Cyberlux?
OMI-001
Omission
No Legalist response included
The email chain includes only Atlantic Wave's position and HII counsel's questions; no response or position from Legalist's counsel appears in this exhibit
Page 2, 3, 4, 5, 6 — From: David A. Walton <dwalton@bellnunnally.com> Sent: Monday, May 19, 2025 2:41 PM To: Belote, Clark J .; willwelter@aol.com
OMI-002
Omission
Settlement agreement terms not fully disclosed
While quotes from the settlement agreement are provided, the complete terms, dates, and circumstances of the settlement are not included in this exhibit
Page 3 — Moreover, the settlement agreement explicitly provides: "Defendants [Cyberlux & Schmidt] agree and grant to Plaintiff [Atlantic Wave & Secure Community] a full security interest and lien interest in all of Defendants' assets
OMI-003
Omission
Specific defaults not detailed
Atlantic Wave references that Cyberlux defaulted 'in several respects as set forth in prior communications and filings' but does not specify the defaults in this document
Page 3 — Atlantic Wave contends that Cyberlux has defaulted on the settlement agreement in several respects as set forth in prior communications and filings

Extracted text

9 pages · 20337 characters

Exhibit 7 — Formatted Extract

Type: exhibit
Court: EDVA
Matter: HII v. Cyberlux interpleader
Docket: 3:25-cv-00483
EXHIBIT 7

Mohamed Khalil, Ahmed

From:

David A. Walton <dwalton@bellnunnally.com>

Sent:

Monday, May 19, 2025 2:41 PM

To:

Belote, Clark J .; willwelter@aol.com

Cc:

David M. Keithly; Evan Sherwood; Freling, Scott; Chap Petersen

Subject:

RE: Atlantic Wave_Letter to HII re Claim to Funds

Attachments:

2024.04.01_Legalist UCC-1 (North Carolina)-Cyberlux.pdf; 2024.07.15_Legalist UCC-1

(North Carolina)-Schmidt.pdf

Clark:

Yes, Atlantic Wave contends it has priority over Legalist. Atlantic Wave perfected its security interest in July 2023, at the latest, in Virginia, Texas, and North Carolina, whereas the file-stamps on Legalist's UCC-1 forms, attached hereto, are in April 2024 (as to Cyberlux) and July 2024 (as to Schmidt) in North Carolina only. Moreover, upon information and belief, the basis of Legalist's security interest did not and could not arise until April 2024 at the earliest when Cyberlux sold receivables from the drone contract to Legalist-that is, more than eight months after Atlantic Wave had perfected its security interest.

Take care, David

David A. Walton BN | Partner BELLNUNNALLY ATTORNEYS & COUNSELORS

dwalton@bellnunnally.com T: 214.740.1445 | F: 214.740.5745 2323 Ross Avenue, Suite 1900 | Dallas, Texas 75201 LinkedIn | Facebook | Twitter | View Bio www.bellnunnally.com

IMPORTANT CONFIDENTIAL: This message contains information from the law firm of Bell Nunnally & Martin LLP that may be subject to the attorney-client privilege or work product doctrine, or may be otherwise confidential and exempt from disclosure under applicable law. Unless expressly stated otherwise, nothing contained in this message should be construed as a digital or electronic signature, nor is this message intended to reflect an intention to make an agreement by electronic means. DO NOT COPY OR FORWARD TO UNAUTHORIZED PERSONS. If you are not the intended recipient or the employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution, copying or forwarding of this communication is strictly prohibited. Unauthorized interception of this message may be in violation of the Electronic Communications Privacy Act, 18 U.S.C. § 2510, et seq. If you have received this communication in error, please notify us immediately at our telephone number: (214) 740-1400.

From: Belote, Clark J. < clark.belote@kaufcan.com> Sent: Monday, May 19, 2025 1:15 PM To: David A. Walton <dwalton@bellnunnally.com>; willwelter@aol.com Cc: David M. Keithly <dkeithly@tocounsel.com>; Evan Sherwood <ESherwood@cov.com>; Freling, Scott <sfreling@cov.com>; Chap Petersen <jcp@petersenfirm.com> Subject: RE: Atlantic Wave_Letter to HII re Claim to Funds [IMAN-IMANACTIVE.FID760274]

This Message has originated outside your organization.

Thank you, David.

Just to clarify one more thing: does AW contend that its claimed security interest in the accounts receivable of Cyberlux has priority over the claimed security interest of Legalist in Cyberlux's accounts receivable?

Clark J. Belote Kaufman & Canoles, P.C. clark.belote@kaufcan.com

T. (757) 624.3109 F. (888) 360.9092 150 W. Main Street, Suite 2100 Norfolk, VA 23510 www.kaufCAN.com LinkedIn

KSC

KAUFMAN & CANOLES we can. and we will.

From: David A. Walton <dwalton@bellnunnally.com> Sent: Monday, May 19, 2025 9:56 AM

To: Belote, Clark J. < clark.belote@kaufcan.com>; willwelter@aol.com

Cc: David M. Keithly <dkeithly@tocounsel.com>; Evan Sherwood <ESherwood@cov.com>; Freling, Scott <sfreling@cov.com>; Chap Petersen <jcp@petersenfirm.com>

Subject: RE: Atlantic Wave_Letter to HII re Claim to Funds

Clark:

Please feel free to further discuss this issue with Will Welter, copied on this email. You are authorized to speak with him directly, as needed.

Put simply, yes, Atlantic Wave's position is it has a security interest in debts or claims against Cyberlux over and above the $1.44mm on the face of the garnishment summons. The settlement agreement between Cyberlux and Atlantic Wave provides for more than just the actual amount owed under the Amended Final Order and Judgment, for example, it provides Atlantic Wave the right to repayment of attorneys' fees and costs in any action caused by a breach of the settlement agreement, and damages associated with the failure to bring Cyberlux's stock to Pink Current status and to remedy the caveat emptor classification on such stock. Moreover, the settlement agreement explicitly provides: "Defendants [Cyberlux & Schmidt] agree and grant to Plaintiff [Atlantic Wave & Secure Community] a full security interest and lien interest in all of Defendants' assets, including but not limited to IP, subsidiaries, contractual rights, accounts receivables, drone sales, etc., which may, in Plaintiff's sole discretion, be memorialized through the filing of UCC-1 forms and Liens." Atlantic Wave contends that Cyberlux has defaulted on the settlement agreement in several respects as set forth in prior communications and filings, which permits Atlantic Wave to enforce the security interest (authorized by the settlement agreement) against Cyberlux on the collateral or assets described in the UCC-1 forms. Attached are those UCC-1 forms that were filed in Virginia, Texas, and North Carolina.

Please feel free to call me at your convenience to discuss.

Take care, David

David A. Walton BN | Partner BELLNUNNALLY ATTORNEYS & COUNSELORS

dwalton@bellnunnally.com T: 214.740.1445 | F: 214.740.5745 2323 Ross Avenue, Suite 1900 | Dallas, Texas 75201 LinkedIn | Facebook | Twitter | View Bio www.bellnunnally.com

IMPORTANT CONFIDENTIAL: This message contains information from the law firm of Bell Nunnally & Martin LLP that may be subject to the attorney-client privilege or work product doctrine, or may be otherwise confidential and exempt from disclosure under applicable law. Unless expressly stated otherwise, nothing contained in this message should be construed as a digital or electronic signature, nor is this message intended to reflect an intention to make an agreement by electronic means. DO NOT COPY OR FORWARD TO UNAUTHORIZED PERSONS. If you are not the intended recipient or the employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution, copying or forwarding of this communication is strictly prohibited. Unauthorized interception of this message may be in violation of the Electronic Communications Privacy Act, 18 U.S.C. § 2510, et seq. If you have received this communication in error, please notify us immediately at our telephone number: (214) 740-1400.

From: Belote, Clark J. < clark.belote@kaufcan.com>

Sent: Thursday, May 15, 2025 1:52 PM

To: Chap Petersen <jcp@petersenfirm.com>; David A. Walton <dwalton@bellnunnally.com> Cc: David M. Keithly <dkeithly@tocounsel.com>; Evan Sherwood <ESherwood@cov.com>; Freling, Scott <sfreling@cov.com> Subject: RE: Atlantic Wave_Letter to HII re Claim to Funds [IMAN-IMANACTIVE.FID760274]

This Message has originated outside your organization.

Chap, not exactly.

In addition to the judgment lien, my understanding is that AW contends that it has a separate security interest in Cyberlux's accounts, which AW contends it perfected with the UCC-1 filing in the attached. The June 28, 2023 Amended Final Order Judgment says: "That the parties have agreed to a security interest and lien interest in all property of Defendants in favor of Plaintiffs 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."

I wanted to understand whether Atlantic Wave contends that its debt or claims against Cyberlux are secured in an amount over and above the $1.44mm on the face of the garnishment summons. The answer may be no. But, it would be helpful for HII to understand Atlantic Wave's position.

Thanks

Clark J. Belote

Kaufman & Canoles, P.C. clark.belote@kaufcan.com

T. (757) 624.3109 F. (888) 360.9092 150 W. Main Street, Suite 2100 Norfolk, VA 23510 www.kaufCAN.com LinkedIn

KSC

KAUFMAN & CANOLES we can. and we will.

From: Chap Petersen <jcp@petersenfirm.com>

Sent: Thursday, May 15, 2025 2:32 PM

To: Belote, Clark J. < clark.belote@kaufcan.com>; David A. Walton <dwalton@bellnunnally.com> Cc: David M. Keithly <dkeithly@tocounsel.com>; Evan Sherwood <ESherwood@cov.com>; Freling, Scott <sfreling@cov.com>

Subject: RE: Atlantic Wave_Letter to HII re Claim to Funds [IMAN-IMANACTIVE.FID760274]

Thanks, Chap

J. Chapman Petersen, Esq. Chap Petersen & Associates, PLC 3970 Chain Bridge Road Fairfax, Virginia 22030 (571) 459-2510 (direct dial) (571) 459-2307 (facsimile) jcp@petersenfirm.com

CHAP PETERSEN & ASSOCIATES PLC 2020 RECOGNIZED BY Best Lawyers

The content contained in this email may include information which is protected by the attorney-client or work product privilege. If you come into contact with this information accidentally, please notify the sender and discard the message immediately. Thank you.

From: Belote, Clark J. < clark.belote@kaufcan.com>

Sent: Thursday, May 15, 2025 2:19 PM To: David A. Walton <dwalton@bellnunnally.com> Cc: David M. Keithly <dkeithly@tocounsel.com>; Chap Petersen <jcp@petersenfirm.com>; Evan Sherwood <ESherwood@cov.com>; Freling, Scott <sfreling@cov.com> Subject: RE: Atlantic Wave_Letter to HII re Claim to Funds [IMAN-IMANACTIVE.FID760274]

David,

In your April 24, 2025 letter, you stated that Atlantic Wave is "owed in excess of $7,774,000" (emphasis added) and that the "[t]he outstanding balance due and owed under the Amended Final Order and Judgment is, at minimum, $912,000."

Can you confirm what dollar amount Atlantic Wave contends is secured by a security interest of Atlantic Wave's against the accounts receivable of Cyberlux?

Thanks Clark

Clark J. Belote Kaufman & Canoles, P.C. clark.belote@kaufcan.com

T. (757) 624.3109 F. (888) 360.9092 150 W. Main Street, Suite 2100 Norfolk, VA 23510

KSC

KAUFMAN & CANOLES we can. and we will.

I www.kaufCAN.com LinkedIn

From: David A. Walton <dwalton@bellnunnally.com> Sent: Tuesday, May 6, 2025 7:51 PM To: Belote, Clark J. < clark.belote@kaufcan.com> Cc: David M. Keithly <dkeithly@tocounsel.com>; willwelter@aol.com Subject: RE: Atlantic Wave_Letter to HII re Claim to Funds Importance: High

Clark:

Attached is a supplemental letter on behalf of Atlantic Wave Holdings, LLC, concerning its claim to funds held on behalf of or for the benefit of Cyberlux Corporation. Please do not hesitate to contact me with any questions.

Take care, David

David A. Walton BN | Partner BELLNUNNALLY ATTORNEYS & COUNSELORS

dwalton@bellnunnally.com T: 214.740.1445 | F: 214.740.5745 2323 Ross Avenue, Suite 1900 | Dallas, Texas 75201 LinkedIn | Facebook | Twitter | View Bio www.bellnunnally.com

IMPORTANT CONFIDENTIAL: This message contains information from the law firm of Bell Nunnally & Martin LLP that may be subject to the attorney-client privilege or work product doctrine, or may be otherwise confidential and exempt from disclosure under applicable law. Unless expressly stated otherwise, nothing contained in this message should be construed as a digital or electronic signature, nor is this message intended to reflect an intention to make an agreement by electronic means. DO NOT COPY OR FORWARD TO UNAUTHORIZED PERSONS. If you are not the intended recipient or the employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution, copying or forwarding of this communication is strictly prohibited. Unauthorized interception of this message may be in violation of the Electronic Communications Privacy Act, 18 U.S.C. § 2510, et seq. If you have received this communication in error, please notify us immediately at our telephone number: (214) 740-1400.

From: David A. Walton Sent: Thursday, April 24, 2025 4:03 PM To: clark.belote@kaufcan.com Cc: David M. Keithly <dkeithly@tocounsel.com>; willwelter@aol.com

Subject: Atlantic Wave_Letter to HII re Claim to Funds

Clark:

Attached is a letter on behalf of Atlantic Wave Holdings, LLC, concerning its claim to funds held on behalf of or for the benefit of Cyberlux Corporation. Please do not hesitate to contact me with any questions.

Take care, David

David A. Walton | Partner

BN

BELLNUNNALLY ATTORNEYS & COUNSELORS

dwalton@bellnunnally.com T: 214.740.1445 | F: 214.740.5745 2323 Ross Avenue, Suite 1900 | Dallas, Texas 75201 LinkedIn | Facebook | Twitter | View Bio www.bellnunnally.com

IMPORTANT CONFIDENTIAL: This message contains information from the law firm of Bell Nunnally & Martin LLP that may be subject to the attorney-client privilege or work product doctrine, or may be otherwise confidential and exempt from disclosure under applicable law. Unless expressly stated otherwise, nothing contained in this message should be construed as a digital or electronic signature, nor is this message intended to reflect an intention to make an agreement by electronic means. DO NOT COPY OR FORWARD TO UNAUTHORIZED PERSONS. If you are not the intended recipient or the employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution, copying or forwarding of this communication is strictly prohibited. Unauthorized interception of this message may be in violation of the Electronic Communications Privacy Act, 18 U.S.C. § 2510, et seq. If you have received this communication in error, please notify us immediately at our telephone number: (214) 740-1400.

Case &s@54c?/500488-6126G

DDocument45,- 7 Filedeoh 082049235 in FrageDe of Pagageh# 547

EXHIBIT A

File Number: 20240038686M

Date Filed: 4/1/2024 7:44:00 PM Elaine F. Marshall NC Secretary of State

UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS

A. NAME & PHONE OF CONTACT AT FILER (optional) Corporation Service Company

B. E-MAIL CONTACT AT FILER (optional) SPRFiling@cscglobal.com

C. SEND ACKNOWLEDGMENT TO: (Name and Address)

Corporation Service Company

801
Adlai Stevenson Drive

Springfield, IL 62703

:unselected:

THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY

1.
DEBTOR'S NAME: Provide only one Debtor name (1a or 1b) (use exact, full name; do not omit, modify, or abbreviate any part of the Debtor's name); if any part of the Individual Debtor's name will not fit in line 1b, leave all of item 1 blank, check here :unselected: and provide the Individual Debtor information in item 10 of the Financing Statement Addendum (Form UCC1Ad)

1a. ORGANIZATION'S NAME CYBERLUX CORPORATION

OR

1b. INDIVIDUAL'S SURNAME

FIRST PERSONAL NAME

ADDITIONAL NAME(S)/INITIAL(S)

SUFFIX

1c. MAILING ADDRESS

CITY

STATE

POSTAL CODE

COUNTRY

800
Park Offices Dr., Ste. 3209

Research Triangle

NC

USA

2.
DEBTOR'S NAME: Provide only one Debtor name (2a or 2b) (use exact, full name; do not omit, modify, or abbreviate any part of the Debtor's name); if any part of the Individual Debtor's name will not fit in line 2b, leave all of item 2 blank, check here :unselected: and provide the Individual Debtor information in item 10 of the Financing Statement Addendum (Form UCC1Ad)

2a. ORGANIZATION'S NAME

OR

2b. INDIVIDUAL'S SURNAME

FIRST PERSONAL NAME

ADDITIONAL NAME(S)/INITIAL(S)

SUFFIX

2c. MAILING ADDRESS

CITY

STATE

POSTAL CODE

COUNTRY

3.
SECURED PARTY'S NAME (or NAME of ASSIGNEE of ASSIGNOR SECURED PARTY): Provide only one Secured Party name (3a or 3b)

3a. ORGANIZATION'S NAME

Legalist SPV III, LP

OR

3b. INDIVIDUAL'S SURNAME

FIRST PERSONAL NAME

ADDITIONAL NAME(S)/INITIAL(S)

SUFFIX

3c. MAILING ADDRESS

CITY

STATE

POSTAL CODE

COUNTRY

58
West Portal Ave. #747

San Francisco

CA

USA

4.
COLLATERAL: This financing statement covers the following collateral: All assets
5.
Check only if applicable and check only one box: Collateral is :unselected: held in a Trust (see UCC1Ad, item 17 and Instructions) :unselected: being administered by a Decedent's Personal Representative

6a. Check only if applicable and check only one box: :unselected: Public-Finance Transaction :unselected: Manufactured-Home Transaction :unselected: A Debtor is a Transmitting Utility

6b. Check only if applicable and check only one box: :unselected: Agricultural Lien :unselected: Non-UCC Filing

7.
ALTERNATIVE DESIGNATION (if applicable): :unselected: Lessee/Lessor :unselected: Consignee/Consignor :unselected: Seller/Buyer :unselected: Bailee/Bailor :unselected: Licensee/Licensor
8.
OPTIONAL FILER REFERENCE DATA: 2797 73186

Case &s@54c2/50048B-6126G

EXHBIT B

File Number: 20240084460A

Date Filed: 7/15/2024 8:27:00 AM Elaine F. Marshall NC Secretary of State

A. NAME & PHONE OF CONTACT AT FILER (optional) Corporation Service Company

B. E-MAIL CONTACT AT FILER (optional) SPRFiling@cscglobal.com

C. SEND ACKNOWLEDGMENT TO: (Name and Address)

Corporation Service Company

801
Adlai Stevenson Drive

Springfield, IL 62703

:unselected:

THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY

1.
DEBTOR'S NAME: Provide only one Debtor name (1a or 1b) (use exact, full name; do not omit, modify, or abbreviate any part of the Debtor's name); if any part of the Individual Debtor's name will not fit in line 1b, leave all of item 1 blank, check here :unselected: and provide the Individual Debtor information in item 10 of the Financing Statement Addendum (Form UCC1Ad)

1a. ORGANIZATION'S NAME OR

1b. INDIVIDUAL'S SURNAME SCHMIDT

FIRST PERSONAL NAME MARK

ADDITIONAL NAME(S)/INITIAL(S) D.

SUFFIX

1c. MAILING ADDRESS

CITY

STATE

POSTAL CODE

COUNTRY

1134
Fearrington Post

Pittsboro

NC

USA

2.
DEBTOR'S NAME: Provide only one Debtor name (2a or 2b) (use exact, full name; do not omit, modify, or abbreviate any part of the Debtor's name); if any part of the Individual Debtor's name will not fit in line 2b, leave all of item 2 blank, check here :unselected: and provide the Individual Debtor information in item 10 of the Financing Statement Addendum (Form UCC1Ad)

2a. ORGANIZATION'S NAME

OR 2b. INDIVIDUAL'S SURNAME FIRST PERSONAL NAME

ADDITIONAL NAME(S)/INITIAL(S)

SUFFIX

2c. MAILING ADDRESS CITY

STATE

POSTAL CODE

COUNTRY

3.
SECURED PARTY'S NAME (or NAME of ASSIGNEE of ASSIGNOR SECURED PARTY): Provide only one Secured Party name (3a or 3b)

3a. ORGANIZATION'S NAME

Legalist SPV III, LP

OR

3b. INDIVIDUAL'S SURNAME

FIRST PERSONAL NAME

ADDITIONAL NAME(S)/INITIAL(S)

SUFFIX

3c. MAILING ADDRESS

CITY

STATE

POSTAL CODE

COUNTRY

58
West Portal Ave. #747

San Francisco

CA

USA

4.
COLLATERAL: This financing statement covers the following collateral: All assets
5.
Check only if applicable and check only one box: Collateral is :unselected: held in a Trust (see UCC1Ad, item 17 and Instructions) :unselected: being administered by a Decedent's Personal Representative

6a. Check only if applicable and check only one box: :unselected: Public-Finance Transaction :unselected: Manufactured-Home Transaction :unselected: A Debtor is a Transmitting Utility

6b. Check only if applicable and check only one box: :unselected: Agricultural Lien :unselected: Non-UCC Filing

7.
ALTERNATIVE DESIGNATION (if applicable): :unselected: Lessee/Lessor :unselected: Consignee/Consignor :unselected: Seller/Buyer :unselected: Bailee/Bailor :unselected: Licensee/Licensor
8.
OPTIONAL FILER REFERENCE DATA: 2879 27331

Original source file

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File
ip-hii-edva-00483-doc-0041-exhibit-7.pdf
Source UID
source:546520c532d2860d3662110493b7fe797831dd4aaee8f36ffcf07c0bcf9fb0d6
Full SHA-256
546520c532d2860d3662110493b7fe797831dd4aaee8f36ffcf07c0bcf9fb0d6