ARG supplemental response — $14.118 million claim, asserted priority and production limits
Original sourceCounsel-signed claimant discovery response asserting contract, equitable priority and damages; no separate corporate verification or supporting instruments attached.
Each card carries the governed distillate name from the database. Open the quoted anchor before relying on the interpretation.
quotationattribution
ARG acknowledges three partial payments totalling$375,000 and credits that sum in its claim.
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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 HII 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
6
claimallegation
ARG’s supplemental discovery objections and responses are dated and served April14,2026 and filed as Exhibit33 April15. Counsel Stephen L.Ne
ARG’s supplemental discovery objections and responses are dated and served April14,2026 and filed as Exhibit33 April15. Counsel Stephen L.Neal Jr signs; no separate corporate sworn verification appears in this12-page copy. The response incorporates its complaint and summary-judgment motion, not supplied here.
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claimallegation
ARG describes a February28,2022 distributor agreement negotiated by Gonzalez and Schmidt, a20% GSA-price discount and80/20 proceeds allocati
ARG describes a February28,2022 distributor agreement negotiated by Gonzalez and Schmidt, a20% GSA-price discount and80/20 proceeds allocation. It asserts later course of dealing and Signal acknowledgements extend compensation to sales regardless of origin or prime, with30% for direct Cyberlux sales. A footnote reports an amendment around February25,2026; neither instrument is attached.
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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
2
claimallegation
ARG claims foundational business-development and operational support, introductions at SOFIC leading to Fairwinds and Irizarry, Holt’s Augus
ARG claims foundational business-development and operational support, introductions at SOFIC leading to Fairwinds and Irizarry, Holt’s August7,2022 roadmap and Moore’s later advisory appointment through Shrock. It also describes technical support in general terms and hundreds of Signal pages. These are ARG’s asserted contribution and causation, not independently established procurement causality or demonstrated technical performance.
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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.'
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
' On or about February 25, 2026, ARG and Cyberlux executed an "Amendment No. 1 to
Distributor Partner Agreement [the Contract]" (the "Amendment").
claimallegation
ARG says HII initially paid Cyberlux $38,700,600 September8,2023 and identifies a $25,769,369.03 final payment; it claims Schmidt acknowledg
ARG says HII initially paid Cyberlux $38,700,600 September8,2023 and identifies a $25,769,369.03 final payment; it claims Schmidt acknowledged its entitlement and directed three partial payments totalling$375,000. ARG alleges full performance and unpaid remainder, describing its April24,2025 Durham action and Cyberlux denials. No bank records or underlying answer are attached.
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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 HII 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
6
claimallegation
ARG calculates20% of the initial payment as$7,740,120;31months at8% annually as$1,599,624.80 ($51,600.80/month); and initial principal plus
ARG calculates20% of the initial payment as$7,740,120;31months at8% annually as$1,599,624.80 ($51,600.80/month); and initial principal plus interest$9,339,744.80. It adds20% of final payment rounded to$5,153,873.81, subtracts$375,000 and claims at least$14,118,618.61 through April15. The displayed arithmetic reconciles, but the31-month convention, interest entitlement and credit application are claimant positions rather than adjudicated accrual. Further final-payment and subsequent interest are not included in that computed base.
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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, HIII 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.
7
claimallegation
ARG asserts the claim is liquidated by arithmetic and claims a security interest and equitable lien/constructive trust with priority Februar
ARG asserts the claim is liquidated by arithmetic and claims a security interest and equitable lien/constructive trust with priority February28,2022 or alternatively September8,2023. It cites its summary-judgment motion and supplies no financing statement, specific assignment or priority adjudication here.
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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.
claimallegation
ARG claims continuing statutory interest and conditionally pursues fees under N.C.Gen.Stat.§75-16.1 if it does not prevail on its contract s
ARG claims continuing statutory interest and conditionally pursues fees under N.C.Gen.Stat.§75-16.1 if it does not prevail on its contract summary-judgment claim. It estimates fees and costs above$50,000 and promises later evidentiary support if needed; neither entitlement nor amount is awarded in this response.
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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.
claimallegation
ARG objects on privilege/work-product and possible defence-sensitive/export-controlled content grounds, saying certain communications requir
ARG objects on privilege/work-product and possible defence-sensitive/export-controlled content grounds, saying certain communications require court guidance, while undertaking production of responsive materials in its possession, custody or control subject to objections. This is an asserted production restriction, not a court classification ruling or proof of prohibited disclosure.
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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
2
otherattribution
ARG will produce responsive documents in its possession, custody or control subject to its objections.
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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
2
entityobservation
The ARG Group, LLC
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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
entityobservation
Mark Schmidt
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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
entityobservation
Anthony Gonzalez
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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 HII 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
6
entityobservation
Stephen L. Neal, Jr.
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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 14" 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.
10
inferenceinference
The arithmetic is internally reproducible, but the disputed contract scope, credit timing and claimed security or equitable priority determi
The arithmetic is internally reproducible, but the disputed contract scope, credit timing and claimed security or equitable priority determine whether that total is recoverable from these proceeds.
omissiongap
The referenced agreements, Signal production, motion, payment proof and security instruments are not supplied.
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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
2
otherattribution
Complete supplied 12-page source reviewed at SHA-256 f3f7b621efe59ce4431f7ff7b42459932e51cefd18488ca81f179f5d312c36d9. Source assertions, or
Complete supplied 12-page source reviewed at SHA-256 f3f7b621efe59ce4431f7ff7b42459932e51cefd18488ca81f179f5d312c36d9. Source assertions, original visual features, filing/communication context and identified missing attachments are retained. Exact version_e5871f194da34cb2a74e945b6fb24996; SHA256 f3f7b621efe59ce4431f7ff7b42459932e51cefd18488ca81f179f5d312c36d9. Full12pages read; amount page and final signature/service pages visually inspected. Technical contribution allegations retained only at evidentiary level, without construction guidance. Original extraction retained.
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EXHIBIT 33
Case 3:25-cv-00483-JAG Document 175-35 Filed 04/15/26 Page 1 of 12 PageID#
3051
questionquestion
What signed contract and amendment, payment ledger, communications and priority evidence substantiate the20% base, interest start and claime
What signed contract and amendment, payment ledger, communications and priority evidence substantiate the20% base, interest start and claimed fund rights?
distillateobservation
CONNECT
Reviewed relationships
The canvas follows the database: source to DISTIL record, DISTIL record to knowledge object, then reviewed relationship. Position alone means nothing.
ARG says HII initially paid Cyberlux $38,700,600 September8,2023 and identifies a $25,769,369.03 final payment; it claims Schmidt acknowledged its entitlement and directed three partial payments totalling$375,000. ARG alleges full performance and unpaid remainder, describing its April24,2025 Durham action and Cyberlux denials. No bank records or underlying answer are attached.qualifiesCyberlux certifies ARG Group $0 and says no amount is due. This is an express debtor denial, not an adjudication extinguishing ARG’s claim.
Legalist labels Thin Air$1,385,489.46, Fairwinds$2,348,542, ARG$14,118,618.61, receiver amount n/a and Maadarani$1,062,576.98 unsecured, with no priority dates. Maadarani’s motion to intervene is marked pending. These classifications express Legalist’s position, not adjudicated status.qualifiesARG asserts the claim is liquidated by arithmetic and claims a security interest and equitable lien/constructive trust with priority February28,2022 or alternatively September8,2023. It cites its summary-judgment motion and supplies no financing statement, specific assignment or priority adjudication here.
Legalist calls ARG unsecured while ARG asserts security/equitable priority; no adjudication supplied.
ARG calculates20% of the initial payment as$7,740,120;31months at8% annually as$1,599,624.80 ($51,600.80/month); and initial principal plus interest$9,339,744.80. It adds20% of final payment rounded to$5,153,873.81, subtracts$375,000 and claims at least$14,118,618.61 through April15. The displayed arithmetic reconciles, but the31-month convention, interest entitlement and credit application are claimant positions rather than adjudicated accrual. Further final-payment and subsequent interest are not included in that computed base.supportsDoes the $14,118,618.61 figure establish ARG’s recovery?
Specifically named source propositions support the bounded distinction or question.
ARG describes a February28,2022 distributor agreement negotiated by Gonzalez and Schmidt, a20% GSA-price discount and80/20 proceeds allocation. It asserts later course of dealing and Signal acknowledgements extend compensation to sales regardless of origin or prime, with30% for direct Cyberlux sales. A footnote reports an amendment around February25,2026; neither instrument is attached.supportsThe arithmetic is internally reproducible, but the disputed contract scope, credit timing and claimed security or equitable priority determine whether that total is recoverable from these proceeds.
Specifically named source propositions support the bounded distinction or question.
ARG calculates20% of the initial payment as$7,740,120;31months at8% annually as$1,599,624.80 ($51,600.80/month); and initial principal plus interest$9,339,744.80. It adds20% of final payment rounded to$5,153,873.81, subtracts$375,000 and claims at least$14,118,618.61 through April15. The displayed arithmetic reconciles, but the31-month convention, interest entitlement and credit application are claimant positions rather than adjudicated accrual. Further final-payment and subsequent interest are not included in that computed base.supportsThe arithmetic is internally reproducible, but the disputed contract scope, credit timing and claimed security or equitable priority determine whether that total is recoverable from these proceeds.
Specifically named source propositions support the bounded distinction or question.
ARG claims foundational business-development and operational support, introductions at SOFIC leading to Fairwinds and Irizarry, Holt’s August7,2022 roadmap and Moore’s later advisory appointment through Shrock. It also describes technical support in general terms and hundreds of Signal pages. These are ARG’s asserted contribution and causation, not independently established procurement causality or demonstrated technical performance.supportsThe referenced agreements, Signal production, motion, payment proof and security instruments are not supplied.
Specifically named source propositions support the bounded distinction or question.
ARG asserts the claim is liquidated by arithmetic and claims a security interest and equitable lien/constructive trust with priority February28,2022 or alternatively September8,2023. It cites its summary-judgment motion and supplies no financing statement, specific assignment or priority adjudication here.supportsThe referenced agreements, Signal production, motion, payment proof and security instruments are not supplied.
Specifically named source propositions support the bounded distinction or question.
ARG describes a February28,2022 distributor agreement negotiated by Gonzalez and Schmidt, a20% GSA-price discount and80/20 proceeds allocation. It asserts later course of dealing and Signal acknowledgements extend compensation to sales regardless of origin or prime, with30% for direct Cyberlux sales. A footnote reports an amendment around February25,2026; neither instrument is attached.supportsWhat signed contract and amendment, payment ledger, communications and priority evidence substantiate the20% base, interest start and claimed fund rights?
Specifically named source propositions support the bounded distinction or question.
ARG describes a February28,2022 distributor agreement negotiated by Gonzalez and Schmidt, a20% GSA-price discount and80/20 proceeds allocation. It asserts later course of dealing and Signal acknowledgements extend compensation to sales regardless of origin or prime, with30% for direct Cyberlux sales. A footnote reports an amendment around February25,2026; neither instrument is attached.supportsThe referenced agreements, Signal production, motion, payment proof and security instruments are not supplied.
Specifically named source propositions support the bounded distinction or question.
ARG asserts the claim is liquidated by arithmetic and claims a security interest and equitable lien/constructive trust with priority February28,2022 or alternatively September8,2023. It cites its summary-judgment motion and supplies no financing statement, specific assignment or priority adjudication here.supportsDoes the $14,118,618.61 figure establish ARG’s recovery?
Specifically named source propositions support the bounded distinction or question.
ARG says HII initially paid Cyberlux $38,700,600 September8,2023 and identifies a $25,769,369.03 final payment; it claims Schmidt acknowledged its entitlement and directed three partial payments totalling$375,000. ARG alleges full performance and unpaid remainder, describing its April24,2025 Durham action and Cyberlux denials. No bank records or underlying answer are attached.supportsWhat signed contract and amendment, payment ledger, communications and priority evidence substantiate the20% base, interest start and claimed fund rights?
Specifically named source propositions support the bounded distinction or question.
ARG asserts the claim is liquidated by arithmetic and claims a security interest and equitable lien/constructive trust with priority February28,2022 or alternatively September8,2023. It cites its summary-judgment motion and supplies no financing statement, specific assignment or priority adjudication here.supportsThe arithmetic is internally reproducible, but the disputed contract scope, credit timing and claimed security or equitable priority determine whether that total is recoverable from these proceeds.
Specifically named source propositions support the bounded distinction or question.
ARG claims continuing statutory interest and conditionally pursues fees under N.C.Gen.Stat.§75-16.1 if it does not prevail on its contract summary-judgment claim. It estimates fees and costs above$50,000 and promises later evidentiary support if needed; neither entitlement nor amount is awarded in this response.supportsDoes the $14,118,618.61 figure establish ARG’s recovery?
Specifically named source propositions support the bounded distinction or question.
ARG calculates20% of the initial payment as$7,740,120;31months at8% annually as$1,599,624.80 ($51,600.80/month); and initial principal plus interest$9,339,744.80. It adds20% of final payment rounded to$5,153,873.81, subtracts$375,000 and claims at least$14,118,618.61 through April15. The displayed arithmetic reconciles, but the31-month convention, interest entitlement and credit application are claimant positions rather than adjudicated accrual. Further final-payment and subsequent interest are not included in that computed base.supportsWhat signed contract and amendment, payment ledger, communications and priority evidence substantiate the20% base, interest start and claimed fund rights?
Specifically named source propositions support the bounded distinction or question.
ARG says HII initially paid Cyberlux $38,700,600 September8,2023 and identifies a $25,769,369.03 final payment; it claims Schmidt acknowledged its entitlement and directed three partial payments totalling$375,000. ARG alleges full performance and unpaid remainder, describing its April24,2025 Durham action and Cyberlux denials. No bank records or underlying answer are attached.supportsThe referenced agreements, Signal production, motion, payment proof and security instruments are not supplied.
Specifically named source propositions support the bounded distinction or question.
ARG asserts the claim is liquidated by arithmetic and claims a security interest and equitable lien/constructive trust with priority February28,2022 or alternatively September8,2023. It cites its summary-judgment motion and supplies no financing statement, specific assignment or priority adjudication here.supportsWhat signed contract and amendment, payment ledger, communications and priority evidence substantiate the20% base, interest start and claimed fund rights?
Specifically named source propositions support the bounded distinction or question.
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