Evidence Record

Exhibit 9

1. The work performed by Receiver in this Receivership to date includes, without limitation, the following: researching the latest developments in relevant turnover receivership law, communications with Plaintiff's counsel, communications with Defendant's counsel, communications...

Type: exhibit
Court: EDVA
Case: HII v. Cyberlux interpleader
Docket: 3:25-cv-00483
Pages: 8
Lines: 199
SHA-256: 2776c8fa3485

DISTIL analysis

DISTIL Run

Profile

Standard

Version

Doc Type

Receiver's Final Report and Motion

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

Receiver's Final Report and Motion Court-Appointed Receiver Robert W. Berleth Texas State Court Receivership / Federal Court Exhibit May 22, 2025 - June 11, 2025

final_accountingjudgment_satisfactionserial_receivershipmulti_jurisdiction

Analytical Frame

Debt collection enforcement through turnover receivership

Analytical Summary

Court-appointed Receiver Robert W. Berleth filed a final report in Harris County District Court documenting complete collection of $3,083,639.75 from Cyberlux Corporation and Mark D. Schmidt to satisfy a Virginia judgment held by Atlantic Wave Holdings, LLC. The receiver proposes distributing funds to satisfy the primary Virginia judgment ($2,182,234.91), legal fees to multiple law firms, receiver expenses ($83,341.22), and a 33% receiver fee ($765,113.62). The document reveals the receiver is aware of a pending serial receivership in a separate Harris County case (Tucker v. Cyberlux, cause no. 2025-41073) set to take effect upon termination of this receivership, suggesting ongoing legal pressure on Cyberlux.

Key Points

Receiver collected full judgment amount of $3,083,639.75 from Cyberlux Corporation and Mark D. Schmidt
Primary creditor Atlantic Wave Holdings to receive $2,182,234.91 in full satisfaction of Virginia judgment
Receiver seeking 33% contingency fee ($765,113.62) plus $83,341.22 in expenses
Receiver took physical possession of real property and supervised inventory shipment
Another receivership (Tucker v. Cyberlux) pending in same court, set to activate upon termination of current receivership

Stage 2

Core — Entities, Events, Claims

15 nodes

ENT-001

Entity

Atlantic Wave Holdings, LLC

Primary judgment creditor in receivership action seeking satisfaction of Virginia court judgment against Cyberlux Corporation

Page 2 — ATLANTIC WAVE HOLDINGS, LLC and SECURE COMMUNITY, LLC., Plaintiffs, Judgment-Creditors

ENT-002

Entity

Cyberlux Corporation

Judgment debtor subject to turnover receivership in Harris County, Texas, with ongoing collection actions

Page 2 — CYBERLUX CORPORATION and MARK D. SCHMIDT, individually, Defendants, Judgment-Debtors

ENT-003

Entity

Mark D. Schmidt

Individual defendant named alongside Cyberlux Corporation as judgment debtor in receivership proceedings

Page 2 — CYBERLUX CORPORATION and MARK D. SCHMIDT, individually, Defendants, Judgment-Debtors

ENT-004

Entity

Robert W. Berleth

Court-appointed receiver in Harris County case, responsible for collecting judgment debt and managing receivership assets

Page 2 — COMES NOW, Robert W. Berleth, of Berleth, as Receiver, appointed by this Honorable Court as Receiver on May 22, 2025

ENT-005

Entity

Secure Community, LLC

Co-plaintiff and judgment creditor alongside Atlantic Wave Holdings in the receivership action

Page 2 — ATLANTIC WAVE HOLDINGS, LLC and SECURE COMMUNITY, LLC., Plaintiffs, Judgment-Creditors

EVT-001

Event

Receiver appointment

Robert W. Berleth appointed as receiver by Harris County District Court on May 22, 2025

Page 2 — appointed by this Honorable Court as Receiver on May 22, 2025

EVT-002

Event

Collection of judgment amount

Receiver recovered $3,083,639.75 from Cyberlux Corporation and Mark D. Schmidt, representing the full balance owed on the judgment

Page 3 — The Receiver has recovered from the Debtor $3,083,639.75, the balance owed on the Judgment Calculation

EVT-003

Event

Physical possession of property

Receiver took physical possession of real property belonging to judgment debtors and supervised inventory and shipment of goods

Page 3 — taking physical possession of the real property, engaging and supervising the inventory and shipment of goods in a commercially reasonable manner

EVT-004

Event

Filing of final report

Receiver filed final report, accounting, and motion to terminate receivership on June 11, 2025

Page 7 — SWORN TO AND SUBSCRIBED before me by Robert Berleth on Wednesday, June 11, 2025

CLM-001

Claim

Virginia judgment satisfaction amount

Atlantic Wave Holdings holds Virginia court judgment requiring payment of $2,182,234.91 from Cyberlux Corporation

Page 4 — $2,182,234.91 to Plaintiff, reflecting full and final satisfaction of the Virginia court judgment, cause no. 23-07422, styled Atlantic Waves Holdings, LLC, in the Circuit Court of the City of Richmond, Virginia

CLM-002

Claim

Receiver fee entitlement

Receiver claims entitlement to 33% presumptive fee ($765,113.62) based on full collection of judgment amount

Page 3 — The receiver collected the full amount of the judgment, and is thus entitled to his presumptive fee of 33% of the total amount collected

CLM-003

Claim

Receiver expense reimbursement

Receiver incurred $83,341.22 in necessary expenses for completing receivership and shipping final inventory

Page 3 — The receiver incurred expenses of $83,341.22. These expenses were necessary to complete the receivership and shipment of the final inventory

CLM-004

Claim

BellNunnally legal fees

BellNunnally claims $21,677.50 for legal fees incurred on behalf of plaintiff in the receivership matter

Page 4 — $21,677.50 to BellNunnally to Defendant, reflecting a portion of the legal fees incurred by the Plaintiff

CLM-005

Claim

Vargo Law Firm fees

Vargo Law Firm claims $21,880.00 for attorney's fees incurred on behalf of plaintiff

Page 4 — $21,880.00 to Vargo Law Firm, PC to Defendant, reflecting attorney's fees incurred by the Plaintiff

CLM-006

Claim

Caudle Law Firm judgment satisfaction

Caudle Law Firm holds separate Virginia judgment requiring payment of $9,392.50 from Cyberlux Corporation

Page 4 — $9,392.50 to Caudle Law Firm, reflecting full and final satisfaction of cause no. CL22-3882-4, in the Circuit Court of the City of Richmond, Virginia

Stage 3

In Situ — Quotations, Tells, Tensions, Questions

6 nodes

QUO-001

Quotation

Receiver's reasonableness assessment

Receiver's self-assessment that all actions and fees during receivership were reasonable, customary, and necessary

Page 3 — It is the Receiver's opinion the Receiver's actions in this receivership to date were reasonable and necessary. It is the Receiver's belief all expenses and fees incurred during the receivership is a customary, reasonable, and necessary fee for the services rendered in Harris County, Texas

TLL-001

Tell

Awareness of serial receivership

Receiver explicitly acknowledges awareness of pending TRO and serial receivership in separate case against same debtor

Page 3 — The receiver is aware of a TRO/serial receivership in cause no. 2025-41073, styled Tucker v. Cyberlux, in the 129th District Court that will take effect upon the termination of this receivership

TEN-001

Tension

Receiver fee versus creditor recovery

Substantial receiver fee ($765K) represents 24.8% of total collected funds, reducing amount available to creditors despite claim of full judgment satisfaction

Page 3, 4 — $765,113.62 as the Receiver's Fee to be taxed as a cost of court... The Receiver has recovered from the Debtor $3,083,639.75, the balance owed on the Judgment Calculation

TEN-002

Tension

Serial receivership pressure

Back-to-back receiverships against Cyberlux suggest ongoing enforcement cascade with second receivership ready to activate immediately upon first termination

QST-001

Question

Multiple judgment origins unclear

Document references multiple Virginia judgments (23-07422 and CL22-3882-4) but does not explain relationship between different creditor claims or underlying disputes

Page 4 — cause no. 23-07422, styled Atlantic Waves Holdings, LLC, in the Circuit Court of the City of Richmond, Virginia... cause no. CL22-3882-4, in the Circuit Court of the City of Richmond, Virginia

QST-002

Question

Physical asset disposition unclear

Document mentions taking possession of real property and supervising inventory shipment but provides no detail on asset values, sale proceeds, or disposition methodology

Page 3 — taking physical possession of the real property, engaging and supervising the inventory and shipment of goods in a commercially reasonable manner

Stage 4

Interpretive — Inferences, Omissions, Patterns

5 nodes

INF-001

Inference

Coordinated multi-creditor enforcement

Multiple creditors with separate Virginia judgments pursuing concurrent collection suggests coordinated enforcement strategy or common underlying business dispute with Cyberlux

Page 4 — cause no. 23-07422, styled Atlantic Waves Holdings, LLC... cause no. CL22-3882-4, in the Circuit Court of the City of Richmond, Virginia

INF-002

Inference

Significant debtor financial distress

Serial receiverships, multiple creditor judgments, and asset liquidation indicate Cyberlux Corporation facing severe financial pressure and potential business collapse

INF-003

Inference

High-value collection justifying premium fee

Receiver's 33% contingency fee on $3M+ collection suggests complex enforcement action involving substantial asset identification, seizure, and liquidation work beyond simple garnishment

Page 3 — The receiver collected the full amount of the judgment, and is thus entitled to his presumptive fee of 33% of the total amount collected... taking physical possession of the real property, engaging and supervising the inventory and shipment of goods

OMI-001

Omission

No debtor objection documented

Document contains no reference to debtor response, objection, or participation in receivership process, suggesting possible default or inability to contest

Page 2 — NOTICE: IF NO WRITTEN RESPONSE OR OBJECTION TO THE MOTION IS FILED WITH THE COURT WITHIN FIVE DAYS OF THE DATE OF SERVICE, THE COURT MAY GRANT THE RELIEF REQUESTED WITHOUT FURTHER NOTICE OF HEARING

OMI-002

Omission

Asset valuation and sale details absent

Report provides no itemization of seized assets, appraisal values, sale methodology, or purchaser information despite claiming commercially reasonable disposition

Page 3 — engaging and supervising the inventory and shipment of goods in a commercially reasonable manner... The receiver incurred expenses of $83,341.22

Extracted text

8 pages · 8554 characters

EXHIBIT 9

CAUSE NO. 2024-48085

ATLANTIC WAVE HOLDINGS, LLC § IN THE DISTRICT COURT

and SECURE COMMUNITY, LLC., Plaintiffs, Judgment-Creditors, §

§ §

129TH JUDICIAL COURT

§ §

CYBERLUX CORPORATION and MARK D. SCHMIDT, individually, § IN AND FOR Defendants, Judgment-Debtors. § HARRIS COUNTY, TEXAS

RECEIVER'S FINAL REPORT, FINAL ACCOUNTING, VERIFIED MOTION FOR DISBURSEMENT OF FUNDS, AND MOTION TO TERMINATE RECEIVERSHIP

NOTICE: IF NO WRITTEN RESPONSE OR OBJECTION TO THE MOTION IS FILED WITH THE COURT WITHIN FIVE DAYS OF THE DATE OF SERVICE, THE COURT MAY GRANT THE RELIEF REQUESTED WITHOUT FURTHER NOTICE OF HEARING.

TO THE HONORABLE JUDGE OF SAID COURT:

COMES NOW, Robert W. Berleth, of Berleth, as Receiver, appointed by this Honorable Court as Receiver on May 22, 2025 hereinafter the "Order" to take and files this Receiver's Final Report, Final Accounting, Verified Motion for Disbursement of Funds, and Motion to Terminate Receivership, and for good cause shows the following:

A. REPORT OF RECEIVER

The work performed by Receiver in this Receivership to date includes, without limitation, the following: researching the latest developments in relevant turnover receivership law, communications with Plaintiff's counsel, communications with Defendant's counsel, communications with other creditors,

reviewing records concerning Defendant, preparing and filing the Receiver Oath, posting bond, taking physical possession of the real property, engaging and supervising the inventory and shipment of goods in a commercially reasonable manner, receiving and accounting for recovered funds, physical reconnoiter of the debtors going concerns, and preparing and filing this Receiver's Verified Motion for Disbursement and the proposed Order.

In accordance with the Order, The Receiver has recovered from the Debtor $3,083,639.75, the balance owed on the Judgment Calculation.

It is the Receiver's opinion the Receiver's actions in this receivership to date were reasonable and necessary. It is the Receiver's belief all expenses and fees incurred during the receivership is a customary, reasonable, and necessary fee for the services rendered in Harris County, Texas. The receiver collected the full amount of the judgment, and is thus entitled to his presumptive fee of 33% of the total amount collected.

The receiver incurred expenses of $83,341.22. These expenses were necessary to complete the receivership and shipment of the final inventory.

The receiver is aware of a TRO/serial receivership in cause no. 2025- 41073, styled Tucker v. Cyberlux, in the 129th District Court that will take effect upon the termination of this receivership.

B. COLLECTIONS ACCOUNTING

During the receivership there have been funds totaling $3,083,639.75 which are being held in trust for this receivership.

The Receiver recommends and request authorization to disburse funds as follows:

a. $2,182,234.91 to Plaintiff, reflecting full and final satisfaction of the Virginia court judgment, cause no. 23-07422, styled Atlantic Waves Holdings, LLC, in the Circuit Court of the City of Richmond, Virginia.

b. $21,677.50 to BellNunnally to Defendant, reflecting a portion of the legal fees incurred by the Plaintiff.

c. $21,880.00 to Vargo Law Firm, PC to Defendant, reflecting attorney's fees incurred by the Plaintiff.

d. $9,392.50 to Caudle Law Firm, reflecting full and final satisfaction of cause no. CL22-3882-4, in the Circuit Court of the City of Richmond, Virginia.

e. $83,341.22 to the Receiver as reasonable and incurred expenses in the prosecution of the receivership, to be taxed as a cost of court.

f. $765,113.62 as the Receiver's Fee to be taxed as a cost of court.

g. Any incidental interest, fractional cents, or small calculation errors to be forwarded to the Texas Access to Justice Foundation.

As of date of this filing, the Receiver has not distributed funds, funds are being held by the Receiver for distribution in trust.

C. MOTION TO TERMINATE

The Receivership has completed with no further remaining issues pending the final distribution of funds as detailed above. The Receiver has fulfilled his obligations required by law. The Receiver moves the Court order the judgment satisfied and Receivership terminated. The Receiver as that effective on the of entry of the Termination Order, the Receivership has been terminated, the Receiver has been discharged, and the Receivership has ceased to exist as a legal entity.

D. PRAYER

10.

WHEREFORE, Receiver prays that this Motion be considered by submission more than five days from the date of service to Judgment Defendants or, alternatively, by oral hearing, and that after consideration of the Motion, the Court grant Receiver's Verified Motion, and that this Court order the following:

a. The Receiver Fee is reasonable. The Receiver's actions to date during this receivership were reasonable;

b. Receiver disburse $2,182,234.91 to Plaintiff, reflecting full and final satisfaction of the Virginia court judgment, cause no. 23- 07422, styled Atlantic Waves Holdings, LLC v. Cyberlux Corporation, et. al., in the Circuit Court of the City of Richmond, Virginia.

c. Receiver disburse $21,677.50 to BellNunnally to Defendant, reflecting a portion of the legal fees incurred by the Plaintiff.

d. Receiver disburse $21,880.00 to Vargo Law Firm, PC to Defendant, reflecting attorney's fees incurred by the Plaintiff. e. Receiver disburse $9,392.50 to Caudle Law Firm, reflecting full and final satisfaction of cause no. CL22-3882-4, in the Circuit Court of the City of Richmond, Virginia.

f. Receiver disburse $83,341.22 to the Receiver as reasonable and incurred expenses in the prosecution of the receivership, to be taxed as a cost of court.

g. Receiver disburse $765,113.62 as the Receiver's Fee to be taxed as a cost of court.

a. The Receivership be terminated; and,

b. Such other and further relief which Receiver is justly entitled.

Respectfully submitted by:

RABAL

BERLETH & ASSOCIATES Robert W. Berleth Texas Bar # 24091860 SDOT #: 3062288 rberleth@berlethlaw.com

9950

Cypresswood, Suite 200 Houston, Texas 77070 Tele: 713-588-6900 Fax: 713-481-0894

VERIFICATION

STATE OF TEXAS

COUNTY OF HARRIS

BEFORE ME, the undersigned authority on this day personally appeared Robert Berleth, who, being by me duly sworn upon oath deposed and stated as follows:

"My name is Robert Berleth. I am the appointed Receiver in the above- styled case and I have personal knowledge of the facts contained and asserted herein. The facts contained herein are true and correct and I am fully authorized to make this affidavit."

RABAT

Robert Berleth APPOINTED RECEIVER

SWORN TO AND SUBSCRIBED before me by Robert Berleth on Wednesday, June 11, 2025, to certify which, witness my hand and seal of office.

SHELI MARIE DAVIS Notary Public, Statt of Texas Comm, Expires 02:25-2029 Notary ID 132943751

Notary Public in and for the State of Texas

Printed Name:

Sheli Marie Davis

My Commission Expires:

April 25, 2029

CERTIFICATE OF SERVICE

I hereby certify that on Wednesday, June 11, 2025, a true and correct copy of the above and foregoing was forwarded to all counsel of record via certified mail, return receipt requested, regular mail, e-mail and/or facsimile. Electronic records were also forwarded in accordance with local rules through the E-file or CM/ECF system.

Counsel for Creditor

Via Texas E-file

Atlantic Wave Holdings, LLC

Shawn M. Grady

SBN 24076411

shawn@gradycollectionlaw.com

2100

West Loop South, Ste. 805

Houston, Texas 77027

Counsel for Debtor,

Via Texas E-file

Cyberlux Corporation

Alexander J. Pennetti

State Bar No. 24110208

THOMPSON COBURN LLP

2100

Ross Avenue, Suite 3200

Dallas, Texas 75201

Respectfully submitted by:

RABAL

BERLETH & ASSOCIATES Texas Bar # 24091860 SDOT #: 3062288

E-mail: rberleth@berlethlaw.com Tristian Harris Texas Bar # 24134449 E-mail: tharris@berlethlaw.com 9950 Cypresswood Dr. Suite 200 Tele: 713-588-6900

APPOINTED RECEIVER

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File: ip-hii-edva-00483-doc-0041-exhibit-9.pdf
Source UID: source:2776c8fa34854f3cf0a4a664f6a325228e246c4228c1f5874539e1a9de5c4419
Full SHA-256: 2776c8fa34854f3cf0a4a664f6a325228e246c4228c1f5874539e1a9de5c4419

DISTIL analysis

Extracted text

Exhibit 9 — Formatted Extract

Original source file