Evidence Record

Exhibit 33

In accordance with Federal Rules of Civil Procedure 33 and 34 and the Court's February 19, 2026 Order entering the Joint Discovery Plan (ECF 149), Intervenor/Claimant The ARG Group, LLC ("ARG"), by and through...

Type
exhibit
Court
EDVA
Case
HII v. Cyberlux interpleader
Docket
3:25-cv-00483
Pages
12
Lines
315
SHA-256
f3f7b621efe5

DISTIL analysis

DISTIL Run
Profile
Standard
Version
1
Doc Type
legal_filing_discovery_response
Total Nodes
29
Node Legend
Entity (ENT)
Event (EVT)
Claim (CLM)
Anchor (ANC)
Omission (OMI)
Tension (TEN)
Tell (TEL)
Inference (INF)
Hypothesis (HYP)
Stage 1
Index
Orientation · No nodes
Document Classification
legal_filing_discovery_response ARG Group LLC counsel federal_civil_litigation_interpleader 2022-02-28 to 2026-04-15
financial_disputecontract_breach_claimmultiple_partiesexport_control_concerns
Analytical Frame
creditor_claim_assertion
Analytical Summary
ARG Group LLC, a Service-Disabled Veteran-Owned Small Business, filed supplemental discovery responses in an interpleader action claiming entitlement to proceeds from a subcontract between Cyberlux Corp and HII Mission Technologies. ARG claims it is owed at least $14.1 million based on a February 2022 Distributor Partner Agreement entitling it to 20% of sales proceeds for Cyberlux products, particularly K8 drones. ARG asserts it was instrumental in securing the HII subcontract through business development, military contacts, and operational support, including introducing Cyberlux to key military stakeholders and advisors. Cyberlux received $38.7 million initially and $25.8 million finally from HII but allegedly paid ARG only $375,000 of amounts owed. ARG filed a North Carolina breach of contract action in April 2025 and now claims a security interest with priority dating to the February 2022 contract, seeking prejudgment interest at 8% and potential attorney's fees under North Carolina law.
Key Points
  • ARG entered February 28, 2022 Distributor Partner Agreement with Cyberlux for 20% of product sales proceeds
  • ARG claims instrumental role in securing HII subcontract for K8 drones through military contacts and business development
  • Cyberlux received $38.7M initial and $25.8M final payments from HII but paid ARG only $375K
  • ARG seeks $14.1M+ including prejudgment interest at 8% under North Carolina law
  • ARG filed separate North Carolina breach of contract action in April 2025
  • Export control concerns raised regarding Signal app communications and DoD sensitive information
Stage 2
Core — Entities, Events, Claims
16 nodes
ENT-001
Entity
The ARG Group, LLC
Service-Disabled Veteran-Owned Small Business providing sales and tactical distribution services of advanced technology equipment to Department of Defense, Federal Law Enforcement Agencies, and US Allies. Global reach across North and South America and Europe, focused on delivering advanced technology solutions to warfighters including drone capabilities.
Page 3 — ARG is a Service-Disabled Veteran-Owned Small Business and is a leading provider of sales and tactical distribution services of advanced technology equipment to the Department of Defense, Federal Law Enforcement Agencies, and US Allies. ARG has a global reach across North and South America and Europe and is focused on delivering advanced technology solutions to the warfighter, including drone capabilities and advanced technology products for special operators.
ENT-002
Entity
Cyberlux Corp
Company that develops, manufactures, and sells Advanced Lighting Solutions for portable and fixed use, solar power solutions, and Unmanned Aircraft Systems products including hardware and software solutions. Products include BrightEye and Watchdog Tactical Illumination Systems, LED and solar products, and FlightEye UAS products including FlightEye drone hardware and Flight GDN software platform.
Page 4 — Defendant Cyberlux develops, manufactures, and sells Advanced Lighting Solutions ("ALS") for portable and fixed use, certain solar power solutions, and Unmanned Aircraft Systems ("UAS") products including UAS hardware and software solutions. Cyberlux's products include, but are not limited to, the BrightEye and Watchdog Tactical Illumination Systems, other various LED and solar products, and the FlightEye UAS products including FlightEye drone hardware and the Flight GDN software operating platform and related product offerings
ENT-003
Entity
HII Mission Technologies Corp
Plaintiff in interpleader action, entity that made payments totaling over $64 million to Cyberlux under subcontract for K8 Unmanned Aircraft Systems.
Page 2, 7 — HII MISSION TECHNOLOGIES CORP., Plaintiff, v. CYBERLUX CORP., et al., Defendants... resulting in Cyberlux receiving the $38,700,600 Initial Payment on September 8, 2023 and $25,769,369.03 Final Payment from HII.
ENT-004
Entity
Mark Schmidt
Chief Executive Officer of Cyberlux who negotiated distributor agreement terms with ARG and allegedly acknowledged ARG's entitlement to 20% of proceeds via Signal messages.
Page 4, 5 — Mr. Gonzalez negotiated the terms of the Contract with Mark Schmidt, Cyberlux's Chief Executive Officer... Indeed, on multiple occasions, Cyberlux's CEO Mark Schmidt expressly acknowledged, via Signal messages and other forms of communication, that ARG was entitled to 20% of the proceeds from sales of the Products (including drones) regardless of who the prime was on the contract.
ENT-005
Entity
K8 Drone
Unmanned Aircraft System product manufactured and sold by Cyberlux pursuant to subcontract with HII. Primary product that ARG and Cyberlux planned to market and sell.
Page 5, 7 — One of the primary Products Cyberlux and ARG planned to market and sell was the K8 Drone, which was manufactured and sold pursuant to the Subcontract between Cyberlux and HII... To be clear, the K8 Drone was manufactured and sold pursuant to the Subcontract that is the subject of HII's Amended Complaint.
EVT-001
Event
Distributor Partner Agreement Execution
On February 28, 2022, ARG and Cyberlux entered into a Distributor Partner Agreement. Terms included ARG securing customer orders and facilitating sales of Cyberlux products in exchange for 20% discount off GSA pricing and 20% of proceeds from product sales payable to ARG (80% to Cyberlux).
Page 4 — On February 28, 2022, ARG and Cyberlux entered into a valid and binding "Cyberlux Corporation and The ARG Group, LLC Distributor Partner Agreement" (the "Contract"). Mr. Gonzalez negotiated the terms of the Contract with Mark Schmidt, Cyberlux's Chief Executive Officer. Pursuant to the terms of the Contract, ARG agreed to secure customer orders and facilitate the sale of Cyberlux's Products and Cyberlux agreed to provide ARG with a 20% discount off the GSA pricing for the Products. In accordance with paragraph 4A of the Contract, ARG and Cyberlux also agreed that the proceeds from sales of the Products would be allocated with 80% payable to Cyberlux and 20% payable to ARG.
EVT-002
Event
Initial Payment from HII to Cyberlux
On September 8, 2023, Cyberlux received $38,700,600 initial payment from HII under the subcontract for K8 Unmanned Aircraft Systems. ARG claims it did not receive the 20% share ($7,740,120) owed under the distributor agreement.
Page 7 — resulting in Cyberlux receiving the $38,700,600 Initial Payment on September 8, 2023... Although Cyberlux received the $38,700,600 Initial Payment from IIII on September 8, 2023, Cyberlux did not remit the 20% of the Initial Payment to ARG.
EVT-003
Event
Final Payment from HII to Cyberlux
Cyberlux received $25,769,369.03 final payment from HII under the K8 drone subcontract. ARG claims it has not received any portion of this payment despite being entitled to 20% ($5,153,873.81).
Page 7 — resulting in Cyberlux receiving the $38,700,600 Initial Payment on September 8, 2023 and $25,769,369.03 Final Payment from HII... ARG also has not received any portion of the Final Payment.
EVT-004
Event
Partial Payments to ARG
At Mark Schmidt's direction, Cyberlux made three partial payments to ARG totaling $375,000, which ARG characterizes as admitting amounts were owed by Cyberlux.
Page 7 — At Mr. Schmidt's direction, Cyberlux made three partial payments to ARG totaling $375,000, admitting that amounts were owed by Cyberlux.
EVT-005
Event
North Carolina Lawsuit Filing
On April 24, 2025, ARG filed a complaint against Cyberlux in Superior Court for the County of Durham, North Carolina, Case No. 25CV004246-310, alleging breach of contract, unjust enrichment/quantum meruit, breach of implied contract, and other claims.
Page 8 — on April 24, 2025, ARG brought a Complaint in the Superior Court for the County of Durham, North Carolina, Case No. 25CV004246-310 (the "North Carolina Action"), alleging claims for breach of contract, unjust enrichment/quantum meruit (in the alternative to the breach of contract claim), breach of contract implied in fact, and other claims.
EVT-006
Event
SOFIC Trade Show Introduction
ARG facilitated Cyberlux's participation at SOFIC trade show in Tampa, bringing key military and defense contacts including representatives from USASOC, Global Ordnance, Ukrainian Army, PRG, and Air Force/Navy EOD units. This led to meeting with Fairwinds Technologies and introduction to Ferd Irizarry who joined Cyberlux's Board of Advisors.
Page 6 — At one particular trade show that ARG Group advised Cyberlux to attend (SOFIC in Tampa), ARG brought its key contacts, including representatives from USASOC, Global Ordnance, the Ukrainian Army, PRG, as well as Air Force and Navy EOD units. This strategic introduction enabled Cyberlux to connect with critical military and defense stakeholders and ultimately led to a meeting with Fairwinds Technologies, LLC. Through this connection, Cyberlux was introduced to Ferd Irizarry, who would join Cyberlux's Board of Advisors.
EVT-007
Event
Amendment to Distributor Agreement
On or about February 25, 2026, ARG and Cyberlux executed Amendment No. 1 to the Distributor Partner Agreement.
Page 5 — On or about February 25, 2026, ARG and Cyberlux executed an "Amendment No. 1 to Distributor Partner Agreement [the Contract]" (the "Amendment").
CLM-001
Claim
ARG's $14.1M+ Total Claim
ARG claims entitlement to at least $14,118,618.61 through April 15, 2026, consisting of: 20% of $38.7M initial payment ($7,740,120), prejudgment interest at 8% for 31 months ($1,599,624.80), 20% of $25.8M final payment ($5,153,873.81), minus $375,000 in partial payments already received. Claim based on February 2022 Distributor Partner Agreement and North Carolina statutory interest provisions.
Page 8 — in accordance with the Contract, ARG is entitled to 20% of the $38,700,600 Initial Payment, which is $7,740,120. ARG has not been paid its 20% of the Initial Payment for over 31 months (as of April 15, 2026). In accordance with N.C. Gen. Stat. §§ 24-1 and 24-5(a), prejudgment interest at 8% for 31 months on the $7,740,120 Initial Payment is $1,599,624.80 ($51,600.80/month). Therefore, through April 15, 2026, ARG is owed $9,339,744.80 from the Initial Payment. ARG also is entitled to 20% of the $25,769,369.03 Final Payment, which is $5,153,873.81, plus prejudgment interest. After subtracting the $375,000 in partial payments made by Cyberlux, through April 15, 2026, in total, ARG is entitled to at least $14,118,618.61
CLM-002
Claim
ARG Instrumental in Securing HII Subcontract
ARG asserts it was instrumental in securing the HII subcontract for Cyberlux through business development efforts, military contact introductions, operational support, trade show facilitation, and technical assistance with K8 drone development.
Page 7 — As a direct result of ARG's efforts pursuant to the Contract, ARG was instrumental in securing for Cyberlux the Subcontract between Cyberlux and HII for Cyberlux to supply K8 Unmanned Aircraft Systems, resulting in Cyberlux receiving the $38,700,600 Initial Payment on September 8, 2023 and $25,769,369.03 Final Payment from HII.
CLM-003
Claim
Security Interest Priority Date
ARG claims its security interest and equitable lien/constructive trust with respect to the proceeds have a priority date of February 28, 2022 (contract execution date). Alternatively, ARG asserts worst-case priority date would be September 8, 2023 (date of Cyberlux's material breach).
Page 9 — for all the reasons set forth in ARG's Motion for Summary Judgment, ARG's security interest and equitable lien/constructive trust with respect to the proceeds have a priority date of February 28, 2022, when the Contract was entered into. At worst, ARG's priority date would be September 8, 2023, when Cyberlux materially breached the Contract.
CLM-004
Claim
Attorney's Fees Claim
ARG claims right to all attorneys' fees and costs incurred in the action pursuant to N.C. Gen. Stat. § 75-16.1 if it does not prevail on breach of contract claim at summary judgment. Fees to date estimated to exceed $50,000 and continuing to mount.
Page 9 — ARG has a right to all attorneys' fees and costs incurred in this action pursuant to the N.C. Gen. Stat. § 75-16.1. ARG will pursue these attorneys' fees and costs if it does not prevail on its breach of contract claim at summary judgment. To date, the attorneys' fees and costs that ARG has incurred are estimated to exceed $50,000 and continue to mount.
Stage 3
In Situ — Quotations, Tells, Tensions, Questions
9 nodes
QUO-001
Quotation
Schmidt Acknowledgment of 20% Entitlement
Mark Schmidt expressly acknowledged via Signal messages and other communications that ARG was entitled to 20% of proceeds from Products sales (including drones) regardless of who the prime was on the contract. Schmidt also confirmed in writing that if Cyberlux sold Products directly without a prime, ARG and Cyberlux would split the 20%, so ARG would receive 30% of proceeds.
Page 5 — Indeed, on multiple occasions, Cyberlux's CEO Mark Schmidt expressly acknowledged, via Signal messages and other forms of communication, that ARG was entitled to 20% of the proceeds from sales of the Products (including drones) regardless of who the prime was on the contract. Mr. Schmidt also confirmed in writing that if Cyberlux sold the Products directly without a prime, ARG and Cyberlux would split the 20%, so ARG would receive 30% of the proceeds.
QUO-002
Quotation
Schmidt Admission of Amounts Owed
Cyberlux's CEO Mr. Schmidt admitted to Anthony Gonzalez that Cyberlux owes ARG pursuant to the Contract, but Cyberlux has failed and/or refused to pay ARG all amounts owed.
Page 7 — Cyberlux's CEO Mr. Schmidt has admitted to Anthony Gonzalez that Cyberlux owes ARG pursuant to the Contract, but Cyberlux has failed and/or refused to pay ARG all amounts owed.
TLL-001
Tell
Signal App Communications Evidence
ARG possesses hundreds of pages of Signal app communications between itself and Cyberlux, as well as separate group conversations including Larry Isely, demonstrating ARG's involvement in guiding Cyberlux through key technical and operational matters including K8 drone firing mechanism integration, specification sheets, and cost data compilation.
Page 7 — ARG possesses hundreds of pages of Signal app communications between itself and Cyberlux, as well as separate group conversations including Larry Isely, which demonstrate ARG's involvement in guiding Cyberlux through key technical and operational matters. These communications show that ARG played a central role in navigating the integration of the K8 drone firing mechanism, developing specification sheets, and compiling cost data necessary to advance the K8 drone project.
TLL-002
Tell
Military Advisors Introduced by ARG
ARG brought in Major General Cameron Holt who provided 8-page roadmap for Foreign Military Sales to Ukraine. Through ARG's contact Jeremy Shrock, Sergeant Major Marty Moore joined Cyberlux Board of Advisors. Cyberlux's Board ultimately included Major General Holt, Sergeant Major Moore, and Brigadier General Irizarry, all introduced through ARG.
Page 6 — ARG also brought in Major General Cameron Holt to assist with developing a pathway to secure a Foreign Military Sales ("FMS") or Foreign Military Financing ("FMF") deal. On August 7, 2022, General Holt provided ARG with an eight-page roadmap titled "Accelerating FlightEye K8 FMS to Ukraine"... By November 2022, Cyberlux added retired Army Sergeant Major Marty Moore to its Board of Advisors. Sergeant Major Moore was a contact of Jeremy Shrock, whom ARG had brought in specifically to assist with lead development and the design of the K8 Drone's firing mechanism. At that point, Cyberlux's Board of Advisors included Major General Holt, Sergeant Major Moore, and Brigadier General Irizarry, all of whom were introduced to Cyberlux through ARG.
TEN-001
Tension
Export Control Disclosure Restrictions
ARG objects to document production on grounds that certain Signal app communications and responsive documents may contain DoD sensitive information and/or technical information subject to U.S. Export Control Laws (ITAR/EAR). Transfer to foreign nationals or representatives without prior Government authorization is prohibited under penalty. ARG states certain communications and documents cannot be produced without Court guidance.
Page 3, 10, 11 — ARG objects to this Request on the ground that certain of the Signal app. communications and certain other responsive documents and information may contain Department of Defense sensitive information and/or technical information that is subject to U.S. Export Control Laws, including the International Traffic in Arms Regulations and/or the Department of Commerce Export Administration Regulations. If so, transfer to a foreign national or representative of a foreign government or interest, even in the United States, without prior Government authorization is prohibited and violation of such Export Control Laws is subject to significant penalties. Accordingly, certain communications and responsive documents cannot be produced without the Court's guidance.
TEN-002
Tension
Privileged Communications Objection
ARG objects to interrogatory and document requests on grounds they call for production of information and documents protected by attorney-client privilege and attorney work-product doctrine.
Page 3, 10 — ARG objects to this Interrogatory on the ground that it calls for the production of information and documents protected by the attorney-client privilege and attorney work-product doctrine... ARG objects to this Request on the ground that it calls for the production of information and documents protected by the attorney-client privilege and attorney work-product doctrine.
QST-001
Question
Scope of Profit-Sharing Beyond Contract Terms
Whether ARG's entitlement to 20% of proceeds extends beyond explicit contract terms to sales where ARG did not originate the transaction, as claimed based on course of performance and Schmidt's alleged acknowledgments.
Page 4, 5 — As a result of ARG's substantial assistance, and as confirmed by Cyberlux and ARG's course of performance and written communications, Cyberlux agreed to share profits with ARG on sales of the Products regardless of whether ARG or Cyberlux originated the transaction.
QST-002
Question
Causation of HII Subcontract Award
To what extent ARG's business development efforts and military contact introductions were instrumental versus incidental in Cyberlux securing the HII subcontract for K8 drone supply.
Page 7 — As a direct result of ARG's efforts pursuant to the Contract, ARG was instrumental in securing for Cyberlux the Subcontract between Cyberlux and HII
QST-003
Question
Amendment Timing and Effect
What modifications were made in the February 25, 2026 Amendment to the Distributor Partner Agreement, and whether this amendment affects ARG's claims to proceeds from payments received before the amendment date.
Page 5 — On or about February 25, 2026, ARG and Cyberlux executed an "Amendment No. 1 to Distributor Partner Agreement [the Contract]" (the "Amendment").
Stage 4
Interpretive — Inferences, Omissions, Patterns
4 nodes
INF-001
Inference
Partial Payments as Admission
The three partial payments totaling $375,000 made by Cyberlux at Schmidt's direction can be interpreted as acknowledgment of contractual obligation and amounts owed, potentially weakening any future defense that no amounts were due to ARG.
Page 7 — At Mr. Schmidt's direction, Cyberlux made three partial payments to ARG totaling $375,000, admitting that amounts were owed by Cyberlux.
INF-002
Inference
Strategic Partnership Beyond Distribution
ARG's role extended beyond traditional distributor functions to strategic business partnership, including operational support, military advisor recruitment, technical development assistance, and market access facilitation, supporting claim for broader profit-sharing arrangement.
Page 4, 5 — ARG played an integral role in the growth and success of Cyberlux's enterprise and functioned, in effect, as a business partner... ARG's efforts were critical to Cyberlux's success by introducing Cyberlux to key business contacts and purchasers of the Products and to individuals who could further support Cyberlux's business interests, providing comprehensive operational support, establishing test sites, facilitating the integration of complex firing mechanisms, generating valuable business leads, and advising on technical specifications and cost data
OMI-001
Omission
Cyberlux Defense Details Absent
ARG's filing notes that Cyberlux's Answer in the North Carolina Action contained only general denials and single affirmative defense (failure to state claim), with no motion filed on that defense, no discovery served, and no counterclaims asserted. This minimal response pattern may indicate weak defensive position.
Page 8 — In response to ARG's detailed allegations and claims in its Complaint, Cyberlux filed an Answer that contained general denials and a single affirmative defense based upon the alleged failure to state a claim upon which relief may be granted. Cyberlux did not file a motion based upon its sole defense and has not served any discovery or asserted any counterclaims.
OMI-002
Omission
Contract Paragraph 4A Not Quoted
ARG references paragraph 4A of the Contract as establishing the 80/20 profit allocation but does not provide the actual contract language. The specific wording of this provision would be critical to determining whether it applies to all sales or only certain categories.
Page 4 — In accordance with paragraph 4A of the Contract, ARG and Cyberlux also agreed that the proceeds from sales of the Products would be allocated with 80% payable to Cyberlux and 20% payable to ARG.

Extracted text

12 pages · 19801 characters

Exhibit 33 — Formatted Extract

Type: exhibit
Court: EDVA
Matter: HII v. Cyberlux interpleader
Docket: 3:25-cv-00483
EXHIBIT 33

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF VIRGINIA Richmond Division

HII MISSION TECHNOLOGIES CORP.,

)

Plaintiff,

) ) ) )

Case No. 3:25-cv-483

V.

)

)

CYBERLUX CORP., et al.,

) )

Defendants.

)

)

THE ARG GROUP, LLC'S SUPPLEMENTAL OBJECTIONS AND RESPONSES TO INTERROGATORY AND DOCUMENT REQUESTS

In accordance with Federal Rules of Civil Procedure 33 and 34 and the Court's February 19, 2026 Order entering the Joint Discovery Plan (ECF 149), Intervenor/Claimant The ARG Group, LLC ("ARG"), by and through its undersigned counsel of record, respectfully submits these Supplemental Objections and Responses to the 1 Interrogatory and 2 Document Requests (the "Request" or "Requests") set forth in the Joint Discovery Plan and states as follows:

INTERROGATORY 1: Explain the nature of your claim to any of the proceeds that are the subject of this interpleader, including an explanation of: (a) the amount of the proceeds that you claim; (b) the legal basis for your right to the proceeds; (c) how the amount you claim became a liquidated amount or, if not liquidated, state so; (d) whether you claim a security interest in, lien on, or assignment of all or any portion of the proceeds and, if so, provide your claimed priority date and explain the basis for your security interest, lien, or assignment; (e) whether you claim a right to interest and, if so, the amount and basis for continuing accrual thereof, if any; (f) whether you claim a right to attorney's fees and, if so, the basis therefore and the amount you will claim; and (g) for any creditor claiming a secured interest, identify the

date(s) on which advances were made to Cyberlux or on its behalf for which any secured interest is claimed.

OBJECTIONS AND RESPONSE TO INTERROGATORY 1: ARG objects to this Interrogatory on the ground that it calls for the production of information and documents protected by the attorney-client privilege and attorney work-product doctrine. ARG objects to this Interrogatory on the ground that certain of the Signal app. communications and certain other responsive documents and information may contain Department of Defense sensitive information and/or technical information that is subject to U.S. Export Control Laws, including the International Traffic in Arms Regulations and/or the Department of Commerce Export Administration Regulations. If so, transfer to a foreign national or representative of a foreign government or interest, even in the United States, without prior Government authorization is prohibited and violation of such Export Control Laws is subject to significant penalties. Accordingly, certain communications and responsive documents cannot be produced without the Court's guidance. Subject to, and without waiving, the forgoing Objections, ARG states that the nature of ARG's claim to any of the proceeds that are the subject of this interpleader action is set forth in detail in its Complaint in Intervention (ECF 155), which is incorporated herein by reference. In summary:

ARG's Contract With Cyberlux

ARG is a Service-Disabled Veteran-Owned Small Business and is a leading provider of sales and tactical distribution services of advanced technology equipment to the Department of Defense, Federal Law Enforcement Agencies, and US Allies. ARG has a global reach across North and South America and Europe and is focused on delivering advanced technology solutions to the warfighter, including drone capabilities and advanced technology products for

Filed 04/15/26 Page 4 of 12 PageID#

special operators. ARG serves the Special Operations Command, the U.S. Air Force, the National Guard Bureau, Homeland Security/Customs and Border Protection, and Federal Law Enforcement.

Defendant Cyberlux develops, manufactures, and sells Advanced Lighting Solutions ("ALS") for portable and fixed use, certain solar power solutions, and Unmanned Aircraft Systems ("UAS") products including UAS hardware and software solutions. Cyberlux's products include, but are not limited to, the BrightEye and Watchdog Tactical Illumination Systems, other various LED and solar products, and the FlightEye UAS products including FlightEye drone hardware and the Flight GDN software operating platform and related product offerings (all collectively, the "Products").

In February 2022, ARG initiated discussions with Cyberlux about ways it could support the advancement and commercialization of Cyberlux's Products, including the sale of drones. On February 28, 2022, ARG and Cyberlux entered into a valid and binding "Cyberlux Corporation and The ARG Group, LLC Distributor Partner Agreement" (the "Contract"). Mr. Gonzalez negotiated the terms of the Contract with Mark Schmidt, Cyberlux's Chief Executive Officer.

Pursuant to the terms of the Contract, ARG agreed to secure customer orders and facilitate the sale of Cyberlux's Products and Cyberlux agreed to provide ARG with a 20% discount off the GSA pricing for the Products. In accordance with paragraph 4A of the Contract, ARG and Cyberlux also agreed that the proceeds from sales of the Products would be allocated with 80% payable to Cyberlux and 20% payable to ARG. ARG played an integral role in the growth and success of Cyberlux's enterprise and functioned, in effect, as a business partner. As a result of ARG's substantial assistance, and as confirmed by Cyberlux and ARG's course of performance and written communications, Cyberlux agreed to share profits with ARG on sales of the Products

regardless of whether ARG or Cyberlux originated the transaction. Indeed, on multiple occasions, Cyberlux's CEO Mark Schmidt expressly acknowledged, via Signal messages and other forms of communication, that ARG was entitled to 20% of the proceeds from sales of the Products (including drones) regardless of who the prime was on the contract. Mr. Schmidt also confirmed in writing that if Cyberlux sold the Products directly without a prime, ARG and Cyberlux would split the 20%, so ARG would receive 30% of the proceeds. This agreement recognized ARG's foundational role in enabling Cyberlux's access to those business opportunities.1

ARG's Performance Under The Contract

Following the commencement of the partnership and execution of the Contract, ARG quickly became a critical driver of Cyberlux's growth, actively contributing to business development, expanding market reach, and accelerating the deployment of key product lines. ARG's efforts were critical to Cyberlux's success by introducing Cyberlux to key business contacts and purchasers of the Products and to individuals who could further support Cyberlux's business interests, providing comprehensive operational support, establishing test sites, facilitating the integration of complex firing mechanisms, generating valuable business leads, and advising on technical specifications and cost data, each of which was essential to the effective functioning and growth of Cyberlux's operations. One of the primary Products Cyberlux and ARG planned to market and sell was the K8 Drone, which was manufactured and sold pursuant to the Subcontract between Cyberlux and HII. ECF 41, 11 17-30. To enhance the K8 Drone's appeal and functionality, ARG assembled a specialized team, including members of the U.S. Army, to

1
On or about February 25, 2026, ARG and Cyberlux executed an "Amendment No. 1 to Distributor Partner Agreement [the Contract]" (the "Amendment").

help redesign its firing mechanism, with the goal of boosting both sales and marketability for Cyberlux. To launch the K8 Drone into the marketplace, ARG facilitated Cyberlux's participation in key trade shows, creating valuable opportunities to generate exposure and drive sales. At one particular trade show that ARG Group advised Cyberlux to attend (SOFIC in Tampa), ARG brought its key contacts, including representatives from USASOC, Global Ordnance, the Ukrainian Army, PRG, as well as Air Force and Navy EOD units. This strategic introduction enabled Cyberlux to connect with critical military and defense stakeholders and ultimately led to a meeting with Fairwinds Technologies, LLC. Through this connection, Cyberlux was introduced to Ferd Irizarry, who would join Cyberlux's Board of Advisors. The creation of the Board of Advisors was directly initiated by ARG's recommendation.

ARG also brought in Major General Cameron Holt to assist with developing a pathway to secure a Foreign Military Sales ("FMS") or Foreign Military Financing ("FMF") deal. On August 7, 2022, General Holt provided ARG with an eight-page roadmap titled "Accelerating FlightEye K8 FMS to Ukraine", which outlined the necessary steps, requirements, and government offices involved in advancing the sale of the K8 drones. By November 2022, Cyberlux added retired Army Sergeant Major Marty Moore to its Board of Advisors. Sergeant Major Moore was a contact of Jeremy Shrock, whom ARG had brought in specifically to assist with lead development and the design of the K8 Drone's firing mechanism. At that point, Cyberlux's Board of Advisors included Major General Holt, Sergeant Major Moore, and Brigadier General Irizarry, all of whom were introduced to Cyberlux through ARG.

ARG possesses hundreds of pages of Signal app communications between itself and Cyberlux, as well as separate group conversations including Larry Isely, which demonstrate ARG's involvement in guiding Cyberlux through key technical and operational matters. These

communications show that ARG played a central role in navigating the integration of the K8 drone firing mechanism, developing specification sheets, and compiling cost data necessary to advance the K8 drone project. As a result of ARG's substantial assistance, including establishing key business contacts and facilitating operations, Cyberlux agreed to share profits with ARG on sales regardless of which party originated the transaction. This recognized ARG's foundational role in enabling Cyberlux's access to those business opportunities.

As a direct result of ARG's efforts pursuant to the Contract, ARG was instrumental in securing for Cyberlux the Subcontract between Cyberlux and HII for Cyberlux to supply K8 Unmanned Aircraft Systems, resulting in Cyberlux receiving the $38,700,600 Initial Payment on September 8, 2023 and $25,769,369.03 Final Payment from HII. To be clear, the K8 Drone was manufactured and sold pursuant to the Subcontract that is the subject of HII's Amended Complaint. See ECF 41, 11 17-30. Cyberlux's CEO Mr. Schmidt has admitted to Anthony Gonzalez that Cyberlux owes ARG pursuant to the Contract, but Cyberlux has failed and/or refused to pay ARG all amounts owed. At Mr. Schmidt's direction, Cyberlux made three partial payments to ARG totaling $375,000, admitting that amounts were owed by Cyberlux.

Cyberlux's Material Breach Of The Contract And The North Carolina Action

As set forth above, ARG fully performed its obligations under the Contract. Although Cyberlux received the $38,700,600 Initial Payment from IIII on September 8, 2023, Cyberlux did not remit the 20% of the Initial Payment to ARG. ARG also has not received any portion of the Final Payment. ARG has repeatedly demanded that Cyberlux pay all amounts owed ARG pursuant to the Contract, but in material breach of Contract Cyberlux has failed to do so.

Because Cyberlux was in material breach of the Contract and engaged in other wrongful conduct, on April 24, 2025, ARG brought a Complaint in the Superior Court for the County of

Durham, North Carolina, Case No. 25CV004246-310 (the "North Carolina Action"), alleging claims for breach of contract, unjust enrichment/quantum meruit (in the alternative to the breach of contract claim), breach of contract implied in fact, and other claims. In response to ARG's detailed allegations and claims in its Complaint, Cyberlux filed an Answer that contained general denials and a single affirmative defense based upon the alleged failure to state a claim upon which relief may be granted. Cyberlux did not file a motion based upon its sole defense and has not served any discovery or asserted any counterclaims.

To date, HII and Cyberlux have not paid ARG the amounts owed pursuant to the Contract, the North Carolina Action, or otherwise despite repeated demands that they do so. With respect to the specific subparts of this Interrogatory, ARG states that: With respect to 1(a), in accordance with the Contract, ARG is entitled to 20% of the $38,700,600 Initial Payment, which is $7,740,120. ARG has not been paid its 20% of the Initial Payment for over 31 months (as of April 15, 2026). In accordance with N.C. Gen. Stat. §§ 24-1 and 24-5(a), prejudgment interest at 8% for 31 months on the $7,740,120 Initial Payment is $1,599,624.80 ($51,600.80/month). Therefore, through April 15, 2026, ARG is owed $9,339,744.80 from the Initial Payment. ARG also is entitled to 20% of the $25,769,369.03 Final Payment, which is $5,153,873.81, plus prejudgment interest. After subtracting the $375,000 in partial payments made by Cyberlux, through April 15, 2026, in total, ARG is entitled to at least $14,118,618.61 from the Initial Payment and Final Payment, including additional prejudgment interest on the Initial Payment as this case progresses and all prejudgment interest on the Final Payment, and applicable post-judgment interest.

With respect to 1(b), ARG's legal basis for its right to the proceeds is based upon the Contract and for all the reasons set forth in ARG's Motion for Summary Judgment.

Document 175-35 Filed 04/15/26 Page 9 of 12 PageID#

With respect to 1(c), the amount ARG claims set forth above is liquidated in that it is easily determined based upon simple math - ARG gets 20% of the Initial and Final Payments and interest at a set rate.

With respect to 1(d), for all the reasons set forth in ARG's Motion for Summary Judgment, ARG's security interest and equitable lien/constructive trust with respect to the proceeds have a priority date of February 28, 2022, when the Contract was entered into. At worst, ARG's priority date would be September 8, 2023, when Cyberlux materially breached the Contract.

With respect to 1(e), ARG claims a right to interest and the amount of claimed interest known to date is set forth above. The basis for continuing accrual is based upon N.C. Gen. Stat. §§ 24-1 and 24-5(a). ARG reserves the right to supplement this response as the case proceeds and additional interest is incurred.

With respect to 1(f), ARG has a right to all attorneys' fees and costs incurred in this action pursuant to the N.C. Gen. Stat. § 75-16.1. ARG will pursue these attorneys' fees and costs if it does not prevail on its breach of contract claim at summary judgment. To date, the attorneys' fees and costs that ARG has incurred are estimated to exceed $50,000 and continue to mount. If needed, ARG will submit Declaration(s) and supporting evidence to prove-up its attorneys' fees and costs at the appropriate time and in accordance with the governing Rules and/or Court Orders. ARG reserves the right to supplement this response as the case proceeds and additional attorneys' fees and costs are incurred.

With respect to 1(g), see response to 1(d), supra.

ARG reserves the right to amend and/or supplement this Response based upon the discovery of additional responsive information and/or documents.

DOCUMENT REQUEST 1: Documents supporting or otherwise concerning your answer to the above interrogatory.

OBJECTIONS AND RESPONSE TO DOCUMENT REQUEST 1: ARG objects to this Request on the ground that it calls for the production of information and documents protected by the attorney-client privilege and attorney work-product doctrine. ARG objects to this Request on the ground that certain of the Signal app. communications and certain other responsive documents and information may contain Department of Defense sensitive information and/or technical information that is subject to U.S. Export Control Laws, including the International Traffic in Arms Regulations and/or the Department of Commerce Export Administration Regulations. If so, transfer to a foreign national or representative of a foreign government or interest, even in the United States, without prior Government authorization is prohibited and violation of such Export Control Laws is subject to significant penalties. Accordingly, certain communications and responsive documents cannot be produced without the Court's guidance. Subject to, and without waiving, the forgoing Objections, ARG will produce responsive documents within its possession, custody, and/or control.

DOCUMENT REQUEST 2: All documents on which you rely to assert any security interest in, lien on, or assignment of the proceeds that are the subject of this interpleader.

OBJECTIONS AND RESPONSE TO DOCUMENT REQUEST 2: ARG objects to this Request on the ground that it calls for the production of information and documents protected by the attorney-client privilege and attorney work-product doctrine. ARG objects to this Request on the ground that certain of the Signal app. communications and certain other responsive documents and information may contain Department of Defense sensitive information and/or technical information that is subject to U.S. Export Control Laws, including

Document 175-35 3061

Filed 04/15/26 Page 11 of 12 PageID#

the International Traffic in Arms Regulations and/or the Department of Commerce Export Administration Regulations. If so, transfer to a foreign national or representative of a foreign government or interest, even in the United States, without prior Government authorization is prohibited and violation of such Export Control Laws is subject to significant penalties. Accordingly, certain communications and responsive documents cannot be produced without the Court's guidance. Subject to, and without waiving, the forgoing Objections, ARG will produce responsive documents within its possession, custody, and/or control.

ARG reserves the right to amend and/or supplement these Responses based upon the discovery of additional responsive information and/or documents.

Dated: April 14, 2026

Respectfully submitted, /s/ Stephen L. Neal, Jr., Esq. Stephen J. Stine, Esq. (VSB# 66738) Stephen L. Neal, Jr., Esq. (VSB# 87064) THE STINE LAW FIRM, PLLC 3900 Jermantown Rd., Suite 300 Fairfax, VA 22030-4900 Office Phone: 703.934-4647, Ext. 326 Cell Phone: (703) 501-5366 Fax: (703) 991-6559 Email: stine@stinelaw.com sneal@stinelaw.com

Counsel for The ARG Group, LLC

CERTIFICATE OF SERVICE

I hereby certify that on this 14th day of April, 2026, a true and correct copy of the foregoing was served via email upon all counsel of record.

/s/ Stephen L. Neal, Jr., Esq.

Filed 04/15/26 Page 12 of 12 PageID#

Stephen J. Stine, Esq. (VSB# 66738)

Stephen L. Neal, Jr., Esq. (VSB# 87064) THE STINE LAW FIRM, PLLC 3900 Jermantown Rd., Suite 300 Fairfax, VA 22030-4900 Office Phone: 703-934-4647, Ext. 326

Cell Phone: (703) 501-5366 Fax: (703) 991-6559

Email: stine@stinelaw.com

sneal@stinelaw.com

Counsel for The ARG Group, LLC

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