Evidence Record

IP HII EDVA 00483 Doc. 0169 Exhibit 2

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: 10
Lines: 375
SHA-256: 5b64180adff2

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 proceeding for judgment enforcement May 22, 2025 - June 11, 2025

financial_settlementmulti_creditor_distributionserial_receivership_pending

Analytical Frame

Debt collection and asset recovery through receivership mechanism

Analytical Summary

This document is a Receiver's Final Report filed in Harris County, Texas District Court (Cause No. 2024-48085) by court-appointed Receiver Robert W. Berleth. The receivership was established to enforce a Virginia judgment against Cyberlux Corporation and Mark D. Schmidt. The Receiver reports successfully recovering $3,083,639.75, the full balance owed on the judgment. The report proposes a detailed distribution plan allocating funds to the primary creditor Atlantic Wave Holdings ($2.18M), secondary creditor Caudle Law Firm ($9,392.50), attorneys' fees to BellNunnally and Vargo Law Firm (totaling $43,557.50), Receiver expenses ($83,341.22), and the Receiver's fee of $765,113.62 (representing 33% of recovered funds). The Receiver seeks court approval for these disbursements and termination of the receivership, noting that a subsequent receivership in a separate case will take effect upon termination.

Key Points

Receiver recovered 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 for full satisfaction of Virginia judgment
Receiver seeking 33% fee ($765,113.62) based on presumptive rate for full judgment collection
Serial receivership pending in separate case (Tucker v. Cyberlux) to take effect upon termination
Multiple creditors and law firms allocated portions of recovered funds including Caudle Law Firm and attorneys' fees

Stage 2

Core — Entities, Events, Claims

13 nodes

ENT-001

Entity

Robert W. Berleth (Court-appointed Receiver)

Robert W. Berleth of Berleth & Associates, appointed as Receiver by the court on May 22, 2025 in the turnover receivership action.

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

ENT-002

Entity

Atlantic Wave Holdings, LLC (Primary Creditor)

Atlantic Wave Holdings, LLC, plaintiff and judgment-creditor holding a Virginia court judgment against Cyberlux Corporation.

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

ENT-003

Entity

Cyberlux Corporation (Judgment Debtor)

Cyberlux Corporation, defendant and judgment-debtor in the receivership proceedings, subject to asset recovery actions.

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

ENT-004

Entity

Mark D. Schmidt (Individual Judgment Debtor)

Mark D. Schmidt, individually named as judgment-debtor alongside Cyberlux Corporation in the receivership action.

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

ENT-005

Entity

Caudle Law Firm (Secondary Creditor)

Caudle Law Firm, secondary creditor with a separate Virginia Circuit Court judgment to be satisfied from receivership proceeds.

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

EVT-001

Event

Receiver Appointment (May 22, 2025)

Court appointed Robert W. Berleth as Receiver in the turnover receivership proceedings on May 22, 2025.

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

EVT-002

Event

Recovery of Full Judgment Amount

The Receiver recovered $3,083,639.75 from the Debtor, representing the complete balance owed on the Judgment Calculation.

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

EVT-003

Event

Filing of Final Report (June 11, 2025)

Receiver filed the Final Report, Final Accounting, Verified Motion for Disbursement of Funds, and Motion to Terminate Receivership on June 11, 2025.

Page 2 — Filed: 6/11/2025 6:16 PM

EVT-004

Event

Inventory and Shipment of Assets

Receiver took physical possession of real property and engaged in inventory and shipment of goods in a commercially reasonable manner as part of asset recovery process.

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

CLM-001

Claim

Receiver's Fee at Presumptive 33% Rate

Receiver claims entitlement to a fee of $765,113.62, representing 33% of the total amount collected, asserting this is the presumptive fee for full judgment collection.

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-002

Claim

Reasonableness of Receiver Expenses

Receiver asserts that expenses of $83,341.22 were necessary to complete the receivership and shipment of final inventory, requesting these be taxed as court costs.

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-003

Claim

Full Satisfaction of Virginia Judgment

Receiver claims that disbursement of $2,182,234.91 to Atlantic Wave Holdings will constitute full and final satisfaction of the Virginia court judgment in cause no. 23-07422.

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-004

Claim

Completion of Receivership Obligations

Receiver asserts that the receivership has been completed with no further remaining issues pending final distribution, and that all obligations required by law have been fulfilled.

Page 5 — 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

Stage 3

In Situ — Quotations, Tells, Tensions, Questions

7 nodes

TLL-001

Tell

Receiver's Work Summary

Receiver describes the scope of work performed: researching turnover receivership law, communications with multiple parties, reviewing debtor records, preparing filings, posting bond, taking possession of property, supervising asset disposition, accounting for funds, and preparing the final report.

Page 2, 3 — 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

TLL-002

Tell

Serial Receivership Awareness

Receiver discloses awareness of a pending TRO and serial receivership in a separate case (Tucker v. Cyberlux, cause no. 2025-41073) in the same court that will take effect upon termination of the current receivership.

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

High Receiver Fee vs. Creditor Recovery

The Receiver's claimed fee of $765,113.62 (33% of recovery) represents approximately 35% of the primary creditor's net recovery, creating potential tension around fee reasonableness despite the presumptive rate claim.

Page 3, 4 — The receiver collected the full amount of the judgment, and is thus entitled to his presumptive fee of 33% of the total amount collected... $2,182,234.91 to Plaintiff... $765,113.62 as the Receiver's Fee

TEN-002

Tension

Pending Serial Receivership Implications

The existence of a pending serial receivership to take effect immediately upon termination suggests ongoing creditor claims against the same debtor, raising questions about whether all assets were captured in the current proceeding.

QST-001

Question

Source of Recovered Funds

The document does not specify how or from where the $3,083,639.75 was recovered - whether from bank accounts, asset sales, business operations, or other sources.

Page 3 — The Receiver has recovered from the Debtor $3,083,639.75

QST-002

Question

Timeline of Asset Recovery

The document provides the appointment date (May 22, 2025) and filing date (June 11, 2025) but does not detail when during this 20-day period the $3.08M was actually recovered.

Page 2, 3 — appointed by this Honorable Court as Receiver on May 22, 2025... Filed: 6/11/2025 6:16 PM

QST-003

Question

Nature of Inventory Shipped

The report mentions inventory and shipment of goods requiring $83,341.22 in expenses, but does not describe what type of goods, their value, or their 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. These expenses were necessary to complete the receivership and shipment of the final inventory

Stage 4

Interpretive — Inferences, Omissions, Patterns

4 nodes

INF-001

Inference

Rapid Asset Liquidation Success

The recovery of the complete judgment amount within approximately 20 days suggests either readily accessible liquid assets or highly efficient asset liquidation, which is unusually fast for complex receivership proceedings.

Page 2, 3 — appointed by this Honorable Court as Receiver on May 22, 2025... The Receiver has recovered from the Debtor $3,083,639.75, the balance owed on the Judgment Calculation... Filed: 6/11/2025 6:16 PM

INF-002

Inference

Multiple Creditor Priority Coordination

The distribution scheme allocates funds to multiple creditors and law firms in specific amounts, suggesting pre-existing coordination or court-established priority among creditors rather than a contested claims process.

Page 4 — $2,182,234.91 to Plaintiff... $21,677.50 to BellNunnally to Defendant... $21,880.00 to Vargo Law Firm, PC to Defendant... $9,392.50 to Caudle Law Firm

OMI-001

Omission

Absence of Debtor Response Detail

The report provides no information about the debtor's cooperation, resistance, or response to the receivership actions, despite the rapid and complete recovery suggesting either voluntary cooperation or effective enforcement.

Page 2, 3 — The work performed by Receiver in this Receivership to date includes... communications with Defendant's counsel... The Receiver has recovered from the Debtor $3,083,639.75

OMI-002

Omission

Missing Asset Valuation Details

Despite taking possession of real property and conducting inventory of goods requiring shipment, the report provides no asset valuation, property descriptions, or explanation of how these assets contributed to the $3.08M recovery.

Page 3 — taking physical possession of the real property, engaging and supervising the inventory and shipment of goods in a commercially reasonable manner... The Receiver has recovered from the Debtor $3,083,639.75

Extracted text

10 pages · 12443 characters

Exhibit 2

Page 2 of 10 PageID# 2519 621/2025 6:16 PM Marilyn Burgess - District Clerk Harris County Envelope No. 101917029

By: Shanelle Taylor Filed: 6/11/2025 6:16 PM

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, Defendants, Judgment-Debtors. §

§ IN AND FOR 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."

RABAL

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.

Sono

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

Notary Public in and for the State of Texas

Printed Name:

Sheli Marie Davis April 25, 2029

My Commission Expires:

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:

RIBAL

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

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.

Robert Berleth on behalf of Robert Berleth Bar No. 24091860 rberleth@berlethlaw.com Envelope ID: 101917029 Filing Code Description: Motion (No Fee) Filing Description: Receiver's Final Report and Motion to Distribute Funds Status as of 6/12/2025 7:50 AM CST

Case Contacts

Name

BarNumber

TimestampSubmitted

Status

Bernadette Martin

bernadette@gradycollectionlaw.com

6/11/2025 6:16:44 PM

SENT

Bernadette Martin

bernadette@gradycollectionlaw.com

6/11/2025 6:16:44 PM

SENT

Shawn Grady

shawn@gradycollectionlaw.com

6/11/2025 6:16:44 PM

SENT

Shawn Grady

shawn@gradycollectionlaw.com

6/11/2025 6:16:44 PM

SENT

Douglas S.Lang

dlang@thompsoncoburn.com

6/11/2025 6:16:44 PM

SENT

Jeff Brown

jbrown@thompsoncoburn.com

6/11/2025 6:16:44 PM

SENT

Katharine Clark

kclark@thompsoncoburn.com

6/11/2025 6:16:44 PM

SENT

Alex Pennetti

apennetti@thompsoncoburn.com

6/11/2025 6:16:44 PM

SENT

Jocelin A. Tapia

jtapia@thompsoncoburn.com

6/11/2025 6:16:44 PM

SENT

David A.Walton

dwalton@bellnunnally.com

6/11/2025 6:16:44 PM

SENT

LaDonna Arey

LArey@bellnunnally.com

6/11/2025 6:16:44 PM

SENT

Sandra Meiners

smeiners@thompsoncoburn.com

6/11/2025 6:16:44 PM

SENT

Travis Vargo

tvargo@vargolawfirm.com

6/11/2025 6:16:44 PM

SENT

Laurie DeBardeleben

ldebardeleben@thompsoncoburn.com

6/11/2025 6:16:44 PM

SENT

Roxanna Lock

rlock@thompsoncoburn.com

6/11/2025 6:16:44 PM

SENT

Paula Gentry

pgentry@thompsoncoburn.com

6/11/2025 6:16:44 PM

SENT

Records Department

Records@bellnunnally.com

6/11/2025 6:16:44 PM

SENT

Micah Jackson

mjackson@berlethlaw.com

6/11/2025 6:16:44 PM

SENT

Sheli Davis

sdavis@berlethlaw.com

6/11/2025 6:16:44 PM

SENT

Lena Brasher

lbrasher@thompsoncoburn.com

6/11/2025 6:16:44 PM

SENT

Frankie Huff

fhuff@thompsoncoburn.com

6/11/2025 6:16:44 PM

SENT

Hannah Petrea

hpetrea@bellnunnally.com

6/11/2025 6:16:44 PM

SENT

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.

Case Contacts

Hannah Petrea

hpetrea@bellnunnally.com

6/11/2025 6:16:44 PM

SENT

Michael Poynter

mpoynter@vargolawfirm.com

6/11/2025 6:16:44 PM

SENT

Daniel AArdmore

ardmorelawfirm@gmail.com

6/11/2025 6:16:44 PM

SENT

Tristian Harris

tharris@berlethlaw.com

6/11/2025 6:16:44 PM

SENT

Edward W.Gray, Jr.

EGray@thompsoncoburn.com

6/11/2025 6:16:44 PM

SENT

Robert W.Berleth

rberleth@berlethlaw.com

6/11/2025 6:16:44 PM

SENT

Corinne Martin

cmartin@berlethlaw.com

6/11/2025 6:16:44 PM

SENT

Hannah Fischer

hfischer@thompsoncoburn.com

6/11/2025 6:16:44 PM

SENT

Greg Nieman

gnieman@bellnunnally.com

6/11/2025 6:16:44 PM

SENT

Jemisha Gandhi

jgandhi@bellnunnally.com

6/11/2025 6:16:44 PM

SENT

David M.Keithly

dkeithly@mortensontaggart.com

6/11/2025 6:16:44 PM

SENT

Original source file

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File: ip-hii-edva-00483-doc-0169-exhibit-2.pdf
Source UID: source:5b64180adff2b26a00812e17ac1dfc837c3bde7dc0fc4e3c71937bbe8706c8d1
Full SHA-256: 5b64180adff2b26a00812e17ac1dfc837c3bde7dc0fc4e3c71937bbe8706c8d1

DISTIL analysis

Extracted text

IP HII EDVA 00483 Doc. 0169 Exhibit 2 — Formatted Extract

Original source file