The evidence/GT-S-4151576A1CDD

Context source · GT-S-4151576A1CDD

Welter September 2024 update — separately registered counterpart with complete RB cover-sheet rendering

Original sourceSigned creditor declaration and embedded orders, adversarial pleadings, contract copies, reporter transcript and dated OTC capture; source authority is separated by exhibit.
SHA-256 4151576a1cdd7c50eef3…0 pages · 26 MB

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claimallegation

Welter signs September 3, 2024 as managing director of AWH, Secure Community and Strikepoint, supporting the California update. He alleges n

Welter signs September 3, 2024 as managing director of AWH, Secure Community and Strikepoint, supporting the California update. He alleges no regular payments after May, repeated unanswered July–December 2023 drone-information requests, no agreed settlement amendment, and threatened collection assets. These are adverse creditor testimony, not findings that every disputed obligation was breached.

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Case No. 3:24-cv-00482-RBM-VET DECLARATION OF WILLIAM WELTER MORTENSON TAGGART ADAMS LLP David M. Keithly, State Bar No. 292101 dkeithly@mortensontaggart.com Sara K. Ross, State Bar No. 346153 sross@mortensontaggart.com MORTENSON TAGGART ADAMS LLP 300 Spectrum Center Drive, Suite 1200 Irvine, California 92618 Telephone: (949) 774-2224 Facsimile: (949) 774-2545 Attorneys for Plaintiffs and Counterclaim Defendants ATLANTIC WAVE HOLDINGS, LLC and STRIKEPOINT, LLC UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA ATLANTIC WAVE HOLDINGS, LLC, a Virginia limited liability company and STRIKEPOINT CONSULTING, LLC, a Virginia limited liability company, Plaintiffs, vs. CYBERLUX CORPORATION, a Nevada Corporation; MARK D. SCHMIDT, an individual; and DOES 1 to 50, Inclusive, Defendants. CASE NO. 3:24-cv-00482-RBM-VET Honorable Ruth Bermudez Montenegro DECLARATION OF WILLIAM WELTER IN SUPPORT OF PLAINTIFFS ATLANTIC WAVE HOLDINGS, LLC AND STRIKEPOINT CONSULTING, LLC’S UPDATE RE: MOTION TO VACATE Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.765 Page 1 of 164
claimallegation

Settlement’s attached proposed judgment has blank judge/date lines. The separately attached amended judgment is signed June 28 and docketed

Settlement’s attached proposed judgment has blank judge/date lines. The separately attached amended judgment is signed June 28 and docketed June 30, 2023, awards $1,572,500 jointly and severally plus $177,126.19 fees, sanctions $3,895/$6,842.50 and 12% interest, and dismisses the complaint without prejudice. Agreed security language and bankruptcy/appeal waiver language do not themselves prove perfection or bind a bankruptcy court beyond law.

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r Cyberlux ~Settlement_ Agreement_Fina1_002_- I .pdf file:///C:/Users/willw/Downloads/Cyberlux_Settlement_Agreement. .. 13 of 15 VIRGINIA: IN THE CIRCUIT COURT OF THE CITY OF RICHMOND ---------------) ATLANTIC WAVE HOLDINGS, LLC ) AND SECURE COMMUNITY, LLC ) ) Plaintiffs, ) ) v. ) ) CYBERLUX CORPORATION and ) MARK D. SCHl\tlIDT, individually ) ) Defendants. ) ---------------) Case No ORDER OF FINAL JUDGEMENT BEFORE THE COURT is a Motion for Entry of Partial Summary Judgment by Plaintiffs ATLANTIC WA VE HOLDINGS, LLC AND SECURE COMMUNITY, LLC, and agreed to by Defendants CYBERLUX CORPORATION and MARK D. SCHMIDT, individually, and as the authorized representative for CYBERLUX CORPORATION, and IT APPEARING to the Cow-t that the parties hereto have reached a settlement agreement that resolves the cUITent need for continuing litigation. UPON CONSIDERA TTON of the pleadings, the evidence, argument of counsel, the consent of the parties, and for good cause shown, it is hereby ORDERED, ADJUDGED, and DECREED that judgement is GRANTED in favor of Plaintiffs ATLANTIC WA VE HOLDINGS, LLC and SECURE COMMUNITY, LLC, and against Defendants CYBERLUX CORPORATION and MARK D. SCHMIDT, jointly and severally, as follows: a. The Court awards Plaintiffs the sum of ONE MILLION FIVE HUNDRED SEVENTY TWO THOUSAND AND FIVE HUNDRED DOLLARS ($1,572,500) in compensatory damages, jointly and severally, against Defendants CYBERLUX CORPORATION 13 6115/2023, 5:50 PM Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.795 Page 31 of 164
claimallegation

Embedded April 18 Schmidt declaration claims changed payment timing, $167,402.56 overage and continuing compliance. Its twelve listed paymen

Embedded April 18 Schmidt declaration claims changed payment timing, $167,402.56 overage and continuing compliance. Its twelve listed payments sum $779,616.14: $595,616.14 AWH and $184,000 Strikepoint, whereas prose claims $254,000 Strikepoint, a $70,000 gap. $1,110,363.89 less $595,616.14 = $514,747.75, not printed $591,102.45, a $76,354.70 difference. Paragraph 8 is visibly redacted and is not reconstructed; signature dated April 18 Vienna is visible. Underlying wire confirmations and Grimes declaration referenced there are not included in this embedded five-page extract.

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Case 3:24-cv-00196-RBM-VET Document 21-1 Filed 04/18/24 PagelD.534 Page 2 of 25 II DocuSign Envelope ID: 0741C8C4-A675-4EF1-BE7F-A443509C5383 1 CYBERLUX CORPORATION; and MARK D. SCHMIDT, 2 3 4 Counterclaim.ants, v. ATLANTIC WA VE HOLDINGS, 5 LLC; SECURE COMMUNITY, LLC, and STRIKEPOINT CONSULTING, 6 LLC, 7 8 9 Counterclaim Defendants. I, Mark D. Schmidt, declare: EXHIBIT 3 10 1. I am the President and Chief Executive Office of Defendant and 11 Counterclaimant Cyberlux Corporation ("Cyberlux"). I am also individually a 12 Defendant and Counterclaimant. I have personal knowledge of the facts contained 13 within this Declaration based upon me being involved with the transactions that are 14 the subject of this lawsuit and this Declaration. If called as a witness, I would 15 competently testify as to the following facts based on my personal knowledge. 16 2. On or about June 15, 2023, Cyberlux, Schmidt, Atlantic Wave Holdings, 17 LLC ("Atlantic Wave"), Secure Community, LLC ("Secure"), and Strikepoint 18 Consulting, LLC ("Strikepoint") entered into a settlement agreement ("Settlement 19 Agreement") arising from the lawsuit entitled Atlantic Wave Holdings, LLC; and 20 Secure Community, LLC v. Cyberlux Corporation and Mark D. Schmidt, Circuit 21 Court of the City of Richmond, Virginia, Case No. CL22-3882 (the "Virginia 22 Action"), in which Plaintiffs sued to enforce certain contracts to be performed in 23 Virginia through overreaching and economic duress. A true and correct copy of the 24 Settlement Agreement is attached hereto as Exhibit A. 25 3. Pursuant to the terms of the Settlement Agreement, an Amended Final 26 Order and Judgement [sic] ("Settlement Judgement") memorializing the monetary 27 component of the settlement was filed in the Virginia Action on June 28, 2023, a true 28 and correct copy of which is attached hereto as Exhibit B. In fact, the Settlement 2 3.:24-cv-00196-RBM-VET DECLARATION OF MARK D. SCHMIDT IN OPPOSITION TO ATLANTIC WAVE'S MOTION TO STRIKE Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.801 Page 37 of 164
claimallegation

May 31 signed order temporarily lifts enforcement up to $550,000 until June 11 at 5 pm, authorising up to $317,000 payroll including consult

May 31 signed order temporarily lifts enforcement up to $550,000 until June 11 at 5 pm, authorising up to $317,000 payroll including consultants and $230,000 settlement payments, requiring payment records in camera and payroll proof within 48 hours. It restrains new garnishments temporarily and takes other relief under advisement. Permission to use funds is not proof they were paid.

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lJirginia: Jin tbe Cll:ircuit Cll:ourt of tbe Cll:it!' of 3a.icbmonb. 31obn ~arsball Cll:ourts ,Suilbing ATLANTIC WAVE HOLDINGS, LLC, AND SECURE COMMUNITY, LLC, Plaintiffs, v. Case No. CL22-3882 CYBERLUX CORPORATION, AND MARK D. SCHMIDT, Defendants. ORDER On May 31, 2024 came the parties, by counsel, to be heard on the Defendants' "Emergency Motion for Declaratory Relief," filed on May 21, 2024. Upon consideration of the filings, evidence, and arguments included in the record in the above-styled matter, the Court grants Defendants' temporary injunction only. IT IS HEREBY ORDERED: (1) All judgment liens, garnishments, writs of fieri facias, and notice of judgment liens against Defendants' accounts at any third party bank (s) and/or entity(s), including but not limited to funds sequestered in accounts with Towne Bank and PNC Bank are hereby lifted up to $550,000.00 effective immediately. This lift will stay in effect until June 11, 2024 at 5:00 p.m. (2) Defendants may use up to $317,000.00 for the purpose of making payroll and shall provide in-camera proof of payments to the Court within forty-eight (48) hours of any such payments. For the purposes of this Order, payroll is defined as the distribution of payments to company employees and consultants who are entitled to receive compensation as well as other work benefits.1 (3) Defendants may use up to $230,000 for the purpose of making regularly scheduled settlement payments to Plaintiffs and provide in-camera proof of payments to the Court. 1 The Defendants shall provide a spreadsheet of all payments made pursuant to this Order with information noting how it complies with this Order. CL22-3882// Page 112 Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.806 Page 42 of 164
claimallegation

June 7 signed opinion holds the underlying dismissed case final and denies declaratory relief improperly brought by motion in that case, dis

June 7 signed opinion holds the underlying dismissed case final and denies declaratory relief improperly brought by motion in that case, dissolving the May 31 injunction before its scheduled expiry. It denies creditor sanctions and debtor fees, finds creditor entitlement to reasonable defence fees but reserves amount pending affidavit within seven days. It records initial April garnishments dismissed for a future June 28, 2024 judgment-date error and replacements outstanding. It does not decide all alleged settlement breaches or grant the broad injunction sought.

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lJirginia: .lht tbe <lCircuit «:ourt of tbe <ltitp of l\icbmonb, Jobn fflarsbaU «:ourts ,Suilbing ATLANTIC WA VE HOLDINGS, LLC, AND SECURE COMMUNITY, LLC, Plaintiffs, v. CYBERLUX CORPORATION, AND MARK D. SCHMIDT, Defendants. Case No. CL22-3882 OPINION AND ORDER On May 31, 2024 came the parties, in person and by counsel, to be heard on the Defendants' "Emergency Motion for Declaratory Relief," filed on May 21, 2024. The Court, having considered the filings of the parties and having heard their arguments thereon, took the Defendants' Emergency Motion for Declaratory Relief under advisement. 1 After due consideration, the Court DECIDES as follows. RELEVANT BACKGROUND On August 24, 2022 the Plaintiffs filed their "Complaint" against the Defendants, alleging two claims of Breach of Contract,2 Contractual/Equitable Audit, and Quantum Meruit. The parties subsequently entered into a Settlement Agreement, dated June 15, 2023,3 wherein the Defendants agreed to pay a total amount of $1,572,500.00 to the Defendants in scheduled monthly payments.4 The Court entered an agreed "Order of Final Judgment" on June 21, 2023 and then an agreed "Amended Final Order and Judgment" on 1 See page 2 of the "Order," entered by this Court on May 31, 2024. The Court NOTES that it received correspondence from counsel for PNC Bank via electronic mail in response to its May 31, 2024 Order. Counsel indicated that the Defendants were required to post a bond pursuant to §8.01-477 of the Code of Virginia, 1950, as amended. However, §8.01-477 is inapplicable because a motion to quash an execution was not brought before the Court. 2 According to the Complaint, the parties entered into a patent license agreement on July 15, 2019 and a second agreement on October 8, 2021. Compl. 11 7, I 0. The Plaintiff alleges that the Defendants breached both contracts. See id 1135--43. 3 Although the Amended Final Order and Judgment includes language referencing the Settlement Agreement, the Settlement Agreement was neither filed nor attached to the Amended Final Order and Judgment. A copy of the Settlement Agreement is attached as Exhibit I to the Defendants' "Memorandum in Support of Defendants' Emergency Motion for Declaratory Relief." 4 See paragraph 2(c) of the Settlement Agreement. CL22-3882// Page 114 Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.809 Page 45 of 164
claimallegation

July 8 separate injunction action CL24002919 and declaratory action CL24002960 repeat oral-modification/overpayment theories and seek to hal

July 8 separate injunction action CL24002919 and declaratory action CL24002960 repeat oral-modification/overpayment theories and seek to halt enforcement across states. Declaratory complaint appears twice as service copies, not two independent claims. Secure Community return shows July 19 personal service at 4 pm and July 25 filing; AWH return page70 is blank. Issued summonses and registered-agent designation do not establish service wherever return fields are uncompleted.

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COMMONWEALTH OF VIRGINIA RICHMOND CITY CIRCUIT COURT Civil Division 400 NORTH 9TH STREET RICHMOND VA 23219 (804) 646-6506 Summons To: SECURE COMMUNITY LLC RYANBROWN,PLLC 1739 CLARENDON BL VD ARLINGTON VA 22209 Case No. 760CL240029r·00 I The party upon whom this summons and the attached complaint are served is hereby Ltified that unless within 21 days after such service, response is made by filing in the clerk's f>ffice of this court a pleading in writing, in proper legal form, the allegations and charges may be taken as admitted and the court may enter an order,judgment, or decree against such party either by default or after hearing evidence. I Appearance in person is not required by this summons. Done in the name of the Commonwealth of Virginia on,Thursday, August 01, 2024 Clerk of Court: EDWARD F JEWETT Instructions: Hearing Official: Attorney's name: Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.820 Page 56 of 164
claimallegation

August 6 Petersen letter proposes August 23 designee/Schmidt deposition and offers alternatives; August 9 sets August 27 Richmond after no r

August 6 Petersen letter proposes August 23 designee/Schmidt deposition and offers alternatives; August 9 sets August 27 Richmond after no response, again offers changes, and announces intended counsel substitution and withdrawal of predecessor Motion to Reverse. August 23 reiterates nonresponse and attendance. Proposed August 23 notices have blank service dates; repeated copies add no independent confirmation.

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Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PagelD.842 Page 78 of 164 J. Chapman Petersen CHAP PETERSEN jcp@petersenfirm.com Direct: 571-459-2510 & ASSOCIATES, PLC J. Chapman Petersen+* Sharon Kim Petersen Won Yung Uh +also admitted in DC Federico J. Zablah *also admitted in MD Christopher T. Robertson+ admitted in NY Dylan M. Phillips Patrick R. Corish+ Janice M. Jang^+ August 6, 2024 VIA ELECTRONIC MAIL Jimmy F. Robinson, Jr., Esq. 901 East Byrd Street Suite 1300 Richmond, VA 23219 Jimmy.robinson@ogletreedeakins.com Re: Cyberlux Corporation v. Atlantic Wave Holding, LLC, Case No. 240002919-0, In the Circuit Court of the City of Richmond Dear Mr. Robinson: Attached please find a proposed corporate designee notice for taking your client's deposition in the above matter. You will note that we name both Mr. Schmidt and Cyberlux as deponents. If you designate Mr. Schmidt as the corporate representative, then that would likely cover both requests. I've tentatively set this for Friday, August 23. If that date is unavailable, please let me know a date we can do this, preferably before the end of August. I've also set this tentatively for my office in Northern Virginia, assuming that may be more convenient for Mr. Schmidt. If not, then I will find a place in Richmond to do it, pursuant to Rule 4:5 of the Rules of the Supreme Court. Took forward to working with you and thanks, Very sincerely yqurs, J. Chapman Petersen, Esq JCP Enclosure Copy: Client 3970 Chain Bridge Road, Fairfax, Va. 22030 & 571-459-2512 ID 571-459-2307 - petersenfirm.com
claimallegation

August 27 notice covers twenty topics: operations, ownership, sale efforts, valuations, assets, governance, buyers, payments, drones, settle

August 27 notice covers twenty topics: operations, ownership, sale efforts, valuations, assets, governance, buyers, payments, drones, settlement, judgment, conflicts, elections, subsidiaries, OTC status, related loans and finance. Filed copy bears August 9 upload/August 12 clerk processing. Both visible notice service certificates have handwritten August 24, whereas letters and later transcript say August 9 service. Preserve the distinction; questions about acquisitions/assets are discovery topics, not proof those facts occurred.

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Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PagelD.858 Page 94 of 164 VIRGINIA: IN THE CIRCUIT COURT OF THE CITY OF RICHMOND CYBERLUX CORPORATION and MARK D. SCHMIDT, individually Plaintiffs, Case No: CL24002919-00 ATLANTIC WAVE HOLDINGS, LLC AND SECURE COMMUNITY, LLC Defendants. NOTICE OF DEPOSITION CORPORATE DESIGNEE OF PLAINTIFF'S CYBERLUX CORPORATION To: CYBERLUX CORPORATION and MARK D. SCHMIDT c/o Jimmy F. Robinson, Jr., Esq. 901 East Byrd Street Suite 1300 Richmond, VA 23219 Jimmy.robinson@ogletreedeakins.com Counsel for Plaintiffs PLEASE TAKE NOTICE on Tuesday, August 27 2024 at 10:00 AM (Easter Time), pursuant to Virginia Supreme Court Rule 4:5(b)(6), Defendants Atlantic Wave Holdings, LLC ("Atlantic Wave") and Secure Community, LLC ("Secure Community") (collectively "Defendants"), by Counsel, will proceed to take the deposition of a designated representative for Plaintiffs, Cyberlux Corporation ("Cyberlux" or "the Company") and/or Mark D. Schmidt ("Schmidt") (collectively, the "Plaintiffs"), at the law office of Spotts Fain, P.C., 411 E Franklin St # 600, Richmond, VA 23219, for all purposes allowed under the Rules of the Supreme Court of Virginia. Plaintiffs shall designate a representative(s) who can address the following matters:
claimallegation

August 27 nonappearance transcript records Petersen with Welter, no witness, ending 10:11 am. Petersen says his team forwarded an August 26

August 27 nonappearance transcript records Petersen with Welter, no witness, ending 10:11 am. Petersen says his team forwarded an August 26 5:48 pm email saying witness would not appear; before that he had no response or motion to quash. This qualifies an absolute no-notice account. Reporter Tayloe signs certification. Case number on cover differs from spoken number; isolated “afternoon” contrasts with 10:11 am closure. Transcript records counsel’s proffer, not sworn designee answers or a sanctions finding.

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Transcript of Corporate Designee of Plaintiff's Cyberlux Corporation - SOTR Date: August 27, 2024 Case: Cyberlux Corporation, et al. -v- Atlantic Wave Holdings, LLC, et al. Planet Depos Phone: 888.433.3767 | Email: transcripts@planetdepos.com www.planetdepos.com Michigan #8598 | Nevada #089F | New Mexico #566 WORLDWIDE COURT REPORTING & LITIGATION TECHNOLOGY Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.869 Page 105 of 164
claimallegation

RB complaint filed August 12 in SDCA 3:24-cv-01434 alleges defaults on five notes and claims July 15 principal $5,168,000 plus interest $518

RB complaint filed August 12 in SDCA 3:24-cv-01434 alleges defaults on five notes and claims July 15 principal $5,168,000 plus interest $518,960 = $5,686,960, correctly summed. First-note principal $1,418,000 includes stated $250,000 December 19 credit but is not simply $1.5m minus that credit; underlying capitalisation ledger is absent. RB disputes alleged December 2023 conversion of November 22 debt and seeks declaratory relief, damages and fees; no judgment appears here.

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1 COMPLAINT FOR BREACH OF CONTRACT AND DECLARATORY RELIEF 4855-9015-5478, v. 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Sean C. Coughlin, Esq. (SBN 167900) scoughlin@noonanlance.com Ethan T. Boyer, Esq. (SBN 173959) eboyer@noonanlance.com Sara K. Gediman, Esq. (SBN 337792) sgediman@noonanlance.com NOONAN LANCE BOYER & BANACH LLP 701 Island Avenue, Suite 400 San Diego, California 92101 Telephone: (619) 780-0880 Facsimile: (619) 780-0877 Attorneys for Plaintiff RB Capital Partners, Inc. UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA RB CAPITAL PARTNERS, INC., a California Corporation, Plaintiff, vs. CYBERLUX CORPORATION, a Nevada Corporation; DOES 1 through 10, Defendants. Case No.: COMPLAINT FOR BREACH OF CONTRACT AND DECLARATORY RELIEF DEMAND FOR JURY TRIAL Plaintiff RB Capital Partners, Inc., by and through its attorneys, allege against Defendant Cyberlux Corporation, and Does 1-10, inclusive, as follows: THE PARTIES 1. RB Capital Partners, Inc , (“RB CAPITAL”) is, and at all times mentioned in this complaint was, a California corporation with its principal place of business in San Diego, California. RB CAPITAL is a venture capital lender to various emerging and technology-based industries. 2. RB CAPTIAL is informed and believes that Defendant Cyberlux Corporation (“CYBERLUX”) is, and at all times mentioned in this complaint was, a Nevada corporation, with its business mailing address in 800 Park Offices Dr., Suite 3209, Research Tria ngle Park, North Carolina 27709, and that CYBERLUX also maintains offices in San Diego County at 995 Joshua Way Suite A, Vista, California, 92081. RB CAPITAL is informed and believes that CYBERLUX was founded in 2000 and is a defense industry technology solutions company. '24 CV1434 BJC AJB Case 3:24-cv-01434-AJB-BJC Document 1 Filed 08/12/24 PageID.1 Page 1 of 6Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.885 Page 121 of 164
claimallegation

Four attached notes dated October 22, November 8, November 22, 2021 ($1.5m each) and May 23, 2022 ($500,000) provide 5% annual interest, 24-

Four attached notes dated October 22, November 8, November 22, 2021 ($1.5m each) and May 23, 2022 ($500,000) provide 5% annual interest, 24-month terms, no conversion for six months and $0.25 conversion, with 4.99% beneficial ownership cap. Holder elects conversion in writing with note delivery; issuer must deliver shares within twenty business days and give five-business-day prepayment notice after repayment demand. Split provisions say conversion price is affected. Signatures of both sides appear on three; November 22 copy has issuer signature but blank holder line.

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THE SECURITIES REPRESENTED BY THIS INSTRUMENT HA VE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL REASONABLY ACCEPT ABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933. CYBERLUX CORP. CONVERTIBLE PROMISSORY NOTE Principal Amount: $1,500,000.00 USD October 22, 2021 WHEREAS on October 22, 2021, RB Capital Partners , Inc., with its office s at 2856 Torrey Pines Road, La Jolla, California 92037 (the "Holder") loaned funds totaling , $1,500,000.00 to Cyber lux Corp., a Nevada corporation with its office at 800 Park Offices Drive.; Suite 3209; Research Triangle Park, NC 27709 (the "Company"). Payment for the loan was made directly to the Compa ny in the form of a Wire Transfer. WHEREAS the Compa ny and Holder further agreed that such services provided by the Holder to the Company would be evidenced in a convertible note, which convertible note would be convertible into shares of common stock of the Company at the rate of $0.25 in accordance with Section 3 below; NOW THEREFORE THIS AGREEMENT WITNESSES that for and in consideration of the mutual premises and the mutual covenants and agreements contained herein, the parties covenant and agree each with the other as follows: 1. Principal and Interest. 1.1 The Company , for value received, hereby promises to pay to the order of the Holder the sum of One Mi I lion Five Hundred Thousand Do liars ($1,500,000.00) , which amount represents the amount owed to Holder as of October 22, 2021. 1.2 This Convert ible Promi ssory Note (the "Note") shall bear five percent (5%) interest per annum. The Note is for a period of (24) months and cannot be converted until (6) months from the date first written above has passed. 1.3 Upon payment in full of the principal, this Note shall be surrendered to the Company for cancellat ion. 1 EXHIBIT 1 Page 9 Case 3:24-cv-01434-AJB-BJC Document 1-3 Filed 08/12/24 PageID.11 Page 2 of 7Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.895 Page 131 of 164
claimallegation

August 9 signed orders direct recovery of $183,798.34 from PNC for Cyberlux and $4,862.86 from Towne Bank for Schmidt, $188,661.20 combined.

August 9 signed orders direct recovery of $183,798.34 from PNC for Cyberlux and $4,862.86 from Towne Bank for Schmidt, $188,661.20 combined. Welter says those funds were credited. His August balances are AWH/SC principal $430,295.59 plus interest $95,000.62 = $525,296.21; Strikepoint $372,669.40 plus $79,916.69 = $452,586.09. Component totals equal $977,882.30, one cent below printed $977,882.31. No complete account ledger is attached.

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -6- Case No. 3:24-cv-00482-RBM-VET DECLARATION OF W. WELTER MORTENSON TAGGART ADAMS LLP with Defendants' refusal to provide any information on the number of drones sold, further complicates the accurate determination of the total amount owed. 29. Despite receiving $38 million under a US Government contract to supply drones to Ukraine, Defendants have consistently failed to provide the required information and payments as stipulated in the settlement agreement. 30. Following the garnishment of Defendants’ funds held in PNC and Towne Bank accounts in Virginia and subsequent court orders, Plaintiffs applied the remaining garnished funds to reduce the total amount Defendants owe. Specifically, $183,798.34 from PNC Bank and $4,862.86 from Towne Bank were released to Plaintiffs on August 9, 2024. These amounts were applied to partially satisfy Defendants' outstanding obligations under the settlement agreement. 31. As of August 2024, the outstanding amounts due under the Settlement Agreement are as follows: o Atlantic Wave Holdings, LLC and Secure Community, LLC (AWH/SC): Principal: $430,295.59, Interest Due: $95,000.62, Total Owed: $525,296.21 o StrikePoint, LLC: Principal: $372,669.40, Interest Due: $79,916.69, Total Owed: $452,586.09 o Grand Total Owed: $977,882.31 32. Despite these received payments, Defendants have failed to make timely and complete payments as required under the Settlement Agreement. The cessation of payments since May 2024, coupled with Defendants' refusal to provide necessary information on drone sales, complicates the accurate determination of the total amount owed. This persistent non-compliance underscores the need for immediate court intervention to ensure that Plaintiffs can enforce their rightful claims under the settlement agreement and secure the assets needed to satisfy the judgment. 33. There is a remaining dispute over the Caveat Emptor status of Cyberlux's stock. According to the settlement agreement, Defendants promised that the Caveat Emptor status would be removed from their stock on or before December 31, 2023. Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.771 Page 7 of 164
claimallegation

July 12, 2022 $250,000 note likewise has 5% annual interest, 24-month term, six-month conversion bar and 4.99% cap, but $0.10 conversion and

July 12, 2022 $250,000 note likewise has 5% annual interest, 24-month term, six-month conversion bar and 4.99% cap, but $0.10 conversion and price expressly unaffected by forward/reverse splits. Both issuer and holder signatures appear. These distinct economics must not be overwritten with earlier-note boilerplate.

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THE SECURITIES REPRESENTED BY THIS INSTRUMENT HA VE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE COMP ANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933. CYBERLUX CORP. CONVERTIBLE PROMISSORY NOTE Principal Amount: $250,000.00 USO July 12, 2022 WHEREAS on July 12, 2022, RB Capital Partners, Inc., with its offices at 2856 Torrey Pines Road, La Jolla, California 92037 (the "Holder") loaned funds totaling , $250,000.00 to Cyberlux Corp., a Nevada corporation with its office at 800 Park Offices Drive.; Suite 3209; Research Triangle Park, NC 27709 (the "Company "). Payment for the loan was made directly to the Company in the form of a Wire Transfer. WHEREAS the Company and Holder further agreed that such services provided by the Holder to the Company would be evidenced in a convertible note, which convertible note would be convertible into shares of common stock of the Company at the rate of $0.10 in accordance with Section 3 below; NOW THEREFORE THIS AGREEMENT WITNESSES that for and in consideration of the mutual premises and the mutual covenants and agreements contained herein, the parties covenant and agree each with the other as follows: 1. Principal and Interest . 1. 1 The Company, for value received, hereby promises to pay to the order of the Holder the sum of Two Hundred Fifty Thousand Dollars ($250,000.00), which amount represents the amount owed to Holder as of July 12, 2022. 1.2 This Convertible Promissory Note (the "Note") shall bear five percent (5%) interest per annum. The Note is for a period of (24) months and cannot be converted until (6) months from the date first written above has passed. 1.3 Upon payment in full of the principal , this Note shall be surrendered to the Company for cancellation. 1 Exhibit 5 Page 37 Case 3:24-cv-01434-AJB-BJC Document 1-7 Filed 08/12/24 PageID.39 Page 2 of 7Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.923 Page 159 of 164
claimallegation

Note boilerplate provides reasonable collection fees, issuer authority/no-violation warranties, holder investment/sophistication and indefin

Note boilerplate provides reasonable collection fees, issuer authority/no-violation warranties, holder investment/sophistication and indefinite-holding risk acknowledgements, transfer notice and restriction legends, written amendments, California law, issuer presentment/dishonour waiver, no-delay waiver and no impairment covenant. These are contractual terms, not proof regulatory compliance, current enforceability or completed conversion.

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1.4 The principal under this Note shall be payable at the principal office of the Company and shall be forwarded to the address of the Holder hereof as such Holder shall from time to time designate . 2. Attorney's Fees. If the indebtedness represented by this Note or any part thereof is collected in bankruptcy, receivership or other judicial proceedings or if this Note is placed in the hands of attorneys for collection after default , the Company agrees to pay, in addition to the principal payable hereunder , reasonable attorneys' fees and costs incurred by the Holder. 3. Conversion . 3.1 Voluntary Conversion. The Holder shall have the right, exercisab le in whole or in part, to convert the outstanding principal into a number of fully paid and non-assessable whole shares of the Company's $0.001 Par Value common stock ("Common Stock") determined in accordance with Section 3.2 below. 3.2 Shares Issuable. The number of whole shares of Common Stock into which this Note may be voluntarily converted (the "Conversion Shares") shall be determined by dividing the aggregate principal amount borrowed hereunder by $0.25 (the "Note Conversion Price"); provided , however, that, in no event, shall Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of shares of Common stock beneficially owned by Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of this Note or the unexercised or unconverted portion of any other security of Maker subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of common stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in the beneficial ownership by Holder and its affiliates of more than 4.99% of the outstanding shares of common stock of the Company. For purposes of the proviso to the immediate ly preceding sentence, beneficial ownersh ip shall be determined in accordance with Section I 3( d) of the Securities Exchange Act of 1934 and Regulation 13O-G thereunder , except as otherwise provided in clause ( 1) of such proviso. The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the Note Convers ion Price. The Term "Conversion Amount" means, with respect to any convers ion of this Note, the sum of ( I) the principal amount of this Note to be converted in such conversion plus, (2) at the Company's option, accrued and unpaid interest, if any, on such principal amount at the interest rate provided in this Note to the conversion date, provided; however, that the Company shall have the right to pay any or all interest in cash. 3.3 Notice and Conver sion Procedure s. After receipt of demand for repayment , the Company agrees to give the Holder notice at least five (5) business days prior to the time that the Company repays this Note. If the Holder elects to convert this Note, the Holder shall provide the Company with a written notice of conversion setting forth the amount to be converted. The notice must be delivered to the Company together with this Note. Within twenty (20) business days of receipt of such notice, the Company shall deliver to the Holder certificate(s) for the Common Stock 2 EXHIBIT 1 Page 10 Case 3:24-cv-01434-AJB-BJC Document 1-3 Filed 08/12/24 PageID.12 Page 3 of 7Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.896 Page 132 of 164
claimallegation

The embedded RB civil cover sheet visibly identifies RB Capital and Cyberlux, San Diego/Durham counties, diversity basis, other-contract cla

The embedded RB civil cover sheet visibly identifies RB Capital and Cyberlux, San Diego/Durham counties, diversity basis, other-contract classification, original proceeding, $5,686,960 demand and jury request, dated August 12, 2024. Plaintiff citizenship is ticked as citizen of this state rather than corporate category, while complaint describes a corporation. The cover sheet is administrative metadata and does not replace the complaint.

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JS 44 (Rev. 03/24) CIVIL COVER SHEET The JS 44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the purpose of initiating the civil docket sheet. (SEE INSTRUCTIONS ON NEXT PAGE OF THIS FORM.) I. (a) PLAINTIFFS DEFENDANTS (b) County of Residence of First Listed Plaintiff County of Residence of First Listed Defendant (EXCEPT IN U.S. PLAINTIFF CASES) (IN U.S. PLAINTIFF CASES ONLY) NOTE: IN LAND CONDEMNATION CASES, USE THE LOCATION OF THE TRACT OF LAND INVOLVED. (c) Attorneys (Firm Name, Address, and Telephone Number) Attorneys (If Known) II. BASIS OF JURISDICTION (Place an “X” in One Box Only) III. CITIZENSHIP OF PRINCIPAL PARTIES (Place an “X” in One Box for Plaintiff and One Box for Defendant) (For Diversity Cases Only) 1 U.S. Government 3 Federal Question PTF DEF PTF DEF Plaintiff (U.S. Government Not a Party) Citizen of This State 1 1 Incorporated or Principal Place 4 4 of Business In This State 2 U.S. Government 4 Diversity Citizen of Another State 2 2 Incorporated and Principal Place 5 5 Defendant (Indicate Citizenship of Parties in Item III) of Business In Another State Citizen or Subject of a 3 3 Foreign Nation 6 6 Foreign Country IV. NATURE OF SUIT (Place an “X” in One Box Only) Click here for: Nature of Suit Code Descriptions. CONTRACT TORTS FORFEITURE/PENALTY BANKRUPTCY OTHER STATUTES 110 Insurance PERSONAL INJURY PERSONAL INJURY 625 Drug Related Seizure 422 Appeal 28 USC 158 375 False Claims Act 120 Marine 310 Airplane 365 Personal Injury - of Property 21 USC 881 423 Withdrawal 376 Qui Tam (31 USC 130 Miller Act 315 Airplane Product Product Liability 690 Other 28 USC 157 3729(a)) 140 Negotiable Instrument Liability 367 Health Care/ 400 State Reapportionment 150 Recovery of Overpayment 320 Assault, Libel & Pharmaceutical PROPERTY RIGHTS 410 Antitrust & Enforcement of Judgment Slander Personal Injury 820 Copyrights 430 Banks and Banking 151 Medicare Act 330 Federal Employers’ Product Liability 830 Patent 450 Commerce 152 Recovery of Defaulted Liability 368 Asbestos Personal 835 Patent - Abbreviated 460 Deportation Student Loans 340 Marine Injury Product New Drug Application 470 Racketeer Influenced and (Excludes Veterans) 345 Marine Product Liability 840 Trademark Corrupt Organizations 153 Recovery of Overpayment Liability PERSONAL PROPERTY LABOR 880 Defend Trade Secrets 480 Consumer Credit of Veteran’s Benefits 350 Motor Vehicle 370 Other Fraud 710 Fair Labor Standards Act of 2016 (15 USC 1681 or 1692) 160 Stockholders’ Suits 355 Motor Vehicle 371 Truth in Lending Act 485 Telephone Consumer 190 Other Contract Product Liability 380 Other Personal 720 Labor/Management SOCIAL SECURITY Protection Act 195 Contract Product Liability 360 Other Personal Property Damage Relations 861 HIA (1395ff) 490 Cable/Sat TV 196 Franchise Injury 385 Property Damage 740 Railway Labor Act 862 Black Lung (923) 850 Securities/Commodities/ 362 Personal Injury - Product Liability 751 Family and Medical 863 DIWC/DIWW (405(g)) Exchange Medical Malpractice Leave Act 864 SSID Title XVI 890 Other Statutory Actions REAL PROPERTY CIVIL RIGHTS PRISONER PETITIONS 790 Other Labor Litigation 865 RSI (405(g)) 891 Agricultural Acts 210 Land Condemnation 440 Other Civil Rights Habeas Corpus: 791 Employee Retirement 893 Environmental Matters 220 Foreclosure 441 Voting 463 Alien Detainee Income Security Act FEDERAL TAX SUITS 895 Freedom of Information 230 Rent Lease & Ejectment 442 Employment 510 Motions to Vacate 870 Taxes (U.S. Plaintiff Act 240 Torts to Land 443 Housing/ Sentence or Defendant) 896 Arbitration 245 Tort Product Liability Accommodations 530 General 871 IRS—Third Party 899 Administrative Procedure 290 All Other Real Property 445 Amer. w/Disabilities - 535 Death Penalty IMMIGRATION Act/Review or Appeal of Employment Other: 462 Naturalization Application Agency Decision 446 Amer. w/Disabilities - 540 Mandamus & Other 465 Other Immigration 950 Constitutionality of Other 550 Civil Rights Actions State Statutes 448 Education 555 Prison Condition 560 Civil Detainee - Conditions of Confinement V. ORIGIN (Place an “X” in One Box Only) 1 Original Proceeding 2 Removed from State Court 3 Remanded from Appellate Court 4 Reinstated or Reopened 5 Transferred from Another District (specify) 6 Multidistrict Litigation - Transfer 8 Multidistrict Litigation - Direct File VI. CAUSE OF ACTION Cite the U.S. Civil Statute under which you are filing (Do not cite jurisdictional statutes unless diversity ): Brief description of cause: VII. REQUESTED IN COMPLAINT: CHECK IF THIS IS A CLASS ACTION UNDER RULE 23, F.R.Cv.P. DEMAND $ CHECK YES only if demanded in complaint: JURY DEMAND: Yes No VIII. RELATED CASE(S) IF ANY (See instructions): JUDGE DOCKET NUMBER DATE SIGNATURE OF ATTORNEY OF RECORD FOR OFFICE USE ONLY RECEIPT # AMOUNT APPLYING IFP JUDGE MAG. JUDGE 26 USC 7609 INTELLECTUAL San Diego Durham County RB Capital Partners, Inc., a California Corporation Sean C. Coughlin, Esq. NOONAN LANCE BOYER & BANACH LLP 701 Island Ave., Suite 400, San Diego, CA 92101 Cyberlux Corporation, a Nevada Corporation 28 U.S.C. §1332 Breach of Promissory Notes 5,686,960 August 12, 2024 '24 CV1434 BJC AJB Case 3:24-cv-01434-AJB-BJC Document 1-1 Filed 08/12/24 PageID.7 Page 1 of 2Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.891 Page 127 of 164
claimallegation

Welter says discovery bank records show September 8, 2023 receipt of $38.7 million for the drone contract and a May 31, 2024 request for a $

Welter says discovery bank records show September 8, 2023 receipt of $38.7 million for the drone contract and a May 31, 2024 request for a $198,798.37 attorney-fee check. He explicitly withholds bank records from public filing because of third-party financial information and offers them in camera upon request. The exhibit therefore supports the declarant’s account, not direct examination of those transactions.

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -2- Case No. 3:24-cv-00482-RBM-VET DECLARATION OF W. WELTER MORTENSON TAGGART ADAMS LLP 6. Bank records obtained in discovery show that the same day the Court issued the temporary order, Cyberlux requested a check for $198,798.37 to pay its attorneys’ fees. 7. However, the same judge who signed the original order later found that Defendants' request for declaratory relief was improperly filed. In the June 7, 2024, Opinion and Order, the court dismissed Defendants' declaratory relief complaint and awarded Plaintiffs their attorneys' fees for defending against the improperly brought action. Attached hereto as Exhibit C is a true and correct copy of the Virginia Court’s June 7, 2024 Order. 8. Subsequently, on August 9, 2024, the court released $183,798.34 from PNC Bank and $4,862.86 from Towne Bank to Plaintiffs. Exhibits D and E are true and correct copies of the Orders releasing the remaining garnished funds to Plaintiffs. 9. On July 8, 2024, Cyberlux filed a Declaratory Relief action and a Complaint for Temporary Preliminary Injunction in Virginia. Attached hereto as Exhibit F is a true and correct copy of Defendants’ July 8, 2024 filings. 10. Despite these filings claiming the need for emergency relief, Defendants have done nothing to schedule a hearing or submit further briefing regarding their emergency. 11. Additionally, Defendants have ignored several letters from Plaintiffs' counsel regarding deposition scheduling, demonstrating their refusal to engage in the legal process. For instance, letters sent by Plaintiffs' counsel on August 6, 2024, August 9, 2024, and August 23, 2024, went unanswered. Attached hereto as Exhibits G, H, and I are true and correct copies of the letters Plaintiffs’ counsel sent to Defendants’ counsel that remain unanswered. 12. Defendants have also failed to respond to discovery requests and did not appear for a deposition scheduled for August 27, 2024, resulting in a non-appearance. Attached hereto as Exhibit J is a true and correct copy of the non-appearance documents related to Defendants’ failure to produce a witness on August 27, 2024. Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.767 Page 3 of 164
claimallegation

Welter lists alleged transfers: September 8 $250,000 phone transfer; September 11 $213,000 Fletcher Jones vehicle purchase; September 14 $18

Welter lists alleged transfers: September 8 $250,000 phone transfer; September 11 $213,000 Fletcher Jones vehicle purchase; September 14 $187,500 phone transfer; September 19 $55,000 Schwab; September 20 $600,000 phone transfer; September 26 $692,689.64 debit memo; October 16 $850,000 Schmidt Edward Jones and $994,460 G2G Global; October 23 $6,000 Schwab; November 7 $25,000 Schmidt; January 4 $108,555.42 Schmidt; January 29 $25,000 Schmidt; February 7 $20,000 Schmidt; March 6 $290,000 Schmidt; April 11 $50,000 Schmidt, $25,000 Holly Schmidt and $25,000 Schmidt. These sum $4,417,205.06 as stated. Personal misuse and lack of authorisation remain Welter’s characterisations without underlying bank or purpose records.

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -7- Case No. 3:24-cv-00482-RBM-VET DECLARATION OF W. WELTER MORTENSON TAGGART ADAMS LLP As of the date of this filing, the Caveat Emptor status has not been removed. On September 1, 2024, I accessed OTCMarkets.com and searched for CYBL stock. Attached hereto as Exhibit K is a true and correct copy of the information I obtained from OTCMarkets.com regarding CYBL stock. While this dispute remains unresolved, it is not a subject of Plaintiffs' collection action, which deals solely with the enforcement of the amended final judgment and order. 34. I reviewed Defendants’ bank records obtained in discovery. These records confirmed that Defendants received a payment of $38.7 million from a US Government contract to supply drones to Ukraine on September 8, 2023. Due to extensive third-party financial information contained in the bank records, Plaintiffs are not filing the bank records publicly, but Plaintiffs will submit these records for the Court to review in camera upon the Court’s request. 35. Despite receiving a substantial $38 million payment from a US Government contract in September 2023, Defendants misused these funds for personal expenses and transfers instead of fulfilling their obligations under the settlement agreement. 36. Bank records obtained in discovery reveal that Defendants transferred significant sums of money to personal accounts, friends, and family members, beginning on the same day the $38 million was transferred into Cyberlux’s account. Instead of making the required payments to Plaintiffs, Defendant Mark D. Schmidt and his associates diverted these funds for personal use. Specific transfers include:  September 8, 2023: $250,000 phone transfer authorized by Mark Schmidt  September 11, 2023: $213,000 wire to Fletcher Jones Motorcars for a vehicle purchase  September 14, 2023: $187,500 phone transfer authorized by Mark Schmidt  September 19, 2023: $55,000 transfer to Schwab account Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.772 Page 8 of 164
claimallegation

Welter describes Texas collection against Catalyst, a motion-to-vacate stay and failed service at leased premises, based partly on process-s

Welter describes Texas collection against Catalyst, a motion-to-vacate stay and failed service at leased premises, based partly on process-server/leasing-office reports not attached. He separately treats unresolved Caveat Emptor status as outside this collection claim. September 1 OTC capture shows Pink Limited Information and Caveat Emptor; its generic possible reasons do not prove Cyberlux was under a fraud investigation. Footer OTCM quote belongs to OTC Markets, not CYBL.

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -3- Case No. 3:24-cv-00482-RBM-VET DECLARATION OF W. WELTER MORTENSON TAGGART ADAMS LLP 13. In Texas, the Virginia judgment was domesticated, and garnishment proceedings were initiated to obtain assets related to Cyberlux’s subsidiary, Catalyst Machine Works. However, Defendants filed a motion to vacate the domesticated judgment, which automatically stayed the proceedings. Depositions of Cyberlux's PMK and other personnel were scheduled for August 27, 2024, but did not occur due to the motion to vacate. 14. When attempting to serve the PMK subpoena, the process server noted that there were no vehicles parked at the address, and there was no answer at the door. Employees in the leasing office confirmed that Catalyst / Cyberlux employees Neil Whiteley and Phillip Tucker work at this address but are not currently in possession of their office as they are negotiating the terms of their lease. 15. Defendants do not deny making late payments under the settlement agreement. The agreement explicitly states that Defendants shall transmit thirty-six (36) non-defeasible monthly payments of $21,459.00 payable on the first day of each month, beginning in July 2023. Time being of the essence, these monthly payments were to continue on the first of each month until the total Settlement Consideration due to Plaintiffs was paid. Defendants also agreed to accelerate and pay the full outstanding balance of all sums owed under the Consent Judgment within twenty-one (21) days of receiving payment for any contract to purchase drone aircraft (Dkt No. 24-1 at pp. 5-6). 16. The settlement agreement defines a late payment as any payment not received by the first of each month, and states that any breach not cured within three (3) calendar days will be considered a breach of the agreement (Dkt No. 24-1 at p. 10). Specifically, Section 21 of the Settlement Agreement (Dkt. No. 24-1 at p. 11) states: "For the avoidance of doubt, any payment not received by the first of each month shall be deemed late, any information requested shall be due in ten (10) calendar days and, unless cured within 3 calendar days, will be considered a breach of this Agreement." Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.768 Page 4 of 164
claimallegation

May 21 Robinson memorandum seeks injunction and release of garnishments, alleging settlement renegotiation, full performance, improper admin

May 21 Robinson memorandum seeks injunction and release of garnishments, alleging settlement renegotiation, full performance, improper administrative enforcement and harm to payroll. It invokes equitable standards and requests fees. The filing is advocacy, not the court’s adoption of its accusations; references to June 30 judgment filing require comparison to June 28 signed entry and June 30 docket stamp.

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VIRGINIA: IN THE CIRCUIT COURT OF THE CITY OF RICHMOND ATLANTIC WAVE HOLDINGS, LLC AND SECURE COMMUNITY, LLC Plaintiffs RECEIVED AND F ED CIRCUIT C9'URT c,:5'5. MAY 2 1 2024 v. Case No. CL22-3882-oo CYBERLUX CORPORATION and MARK D. SCHMIDT, individually Defendants Memorandum in Support of Defendants' Emergency Motion for Declaratory Relief Defendants Cyberlux Corporation and Mark D. Schmidt, (hereinafter, collectively, "Defendants"), entered into a Settlement Agreement (hereinafter the "Agreement") with Plaintiffs Atlantic Wave Holdings, LLC and Secure Community, LLC (hereinafter "Plaintiffs"). In the face of discovery sanctions, Defendants entered into a Settlement Agreement with Plaintiffs on June 13, 2023 that called for a total amount of $1,572,500 to be paid in scheduled monthly installments. 1 Section 21 of the Settlement Agreement proscribes the remedies available to Plaintiffs should there be a breach of the Agreement. Defendants have not breached the Agreement and continue to timely make the agreed upon payments. 2 . Knowing this, instead of following the terms of the 1 See Settlement Agreement attached hereto as Exhibit 1. The Settlement Agreement incorporated the Court's Order. The Order was ultimately Amended and entered by this Court on June 30, 2023. See Attached Amended Final Order and Judgment attached hereto as Exhibit 2. The Final Amended Order was entered pursuant to the Settlement Agreement and operates in collaboration with that Agreement not alone. 2 If there had been a breach of the Agreement, Plaintiffs would have had to Petition this court for relief. They did not because they are fully aware that there has not been a breach. Instead they acted in contrary to the Rules of Ethics of the Commonwealth - they purposefully ignored the Agreement and this Court and in bad faith initiated administrative processes erroneously representing to third party banks that this Court's Amended Final Order gave Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.776 Page 12 of 164
claimallegation

Attached June 15 settlement bears party signatures and fixes $922,500 IP balance plus $650,000 consulting balance = $1,572,500, with sanctio

Attached June 15 settlement bears party signatures and fixes $922,500 IP balance plus $650,000 consulting balance = $1,572,500, with sanctions $3,895/$6,842.50. First $150,000 payment has multiple triggers but a 45-day outer limit; monthly obligations are $21,459 AWH/SC and $18,055.56 Strikepoint from July 2023 for 36 months. Each acceleration clause includes up to $5,000 per drone sold and payment within 21 days of first receipt by defendants or related entities. Welter’s shorthand full-balance acceleration omits this per-drone qualification.

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Cyberlux _·settlement_ Agreement __ Final_002 _-1.pdf file:///C:/Users/willw/Downloads/Cyberlux_Settlement_Agreement... I of 15 EXHIBIT 1 SETTLEMENT AGREEMENT This Settlement Agreement (the "Agreement") is made as of this 1 Sthth day of June 2023, by and between ATLANTIC WAVE HOLDINGS, LLC, SECURE COMMUNITY, LLC (collectively, "Plaintiffs"), CYBERLUX CORPORATION AND MARK D. SCHMIDT (collectively, "Defendants"), and STRIKEPOINT CONSULTING, . LLC ("Strikepoint") a. separate party with some common interest holders to the Plaintiffs. Plaintiffs, Defendants, and Strikepoint shall collectively be refeiTed to as the "Parties to this Agreement" and Plaintiffs and Defendants shaHcollectively be rcfc1Tcd to as "Parties to the Litigation." RECITALS WHEREAS, Plaintiffs and Defendants entered into. an agreement on October 8, 2021, which compensated Plaintiffs for the reacquisition by Defendant Cyberlux of certain intellectual property in exchange for certain installment payments of fixed liquidated sums by Defendants to Plaintiffs and "Freely Trading" stock, which had fallen into arrears ("the JP Agreement"); WHEREAS, on September 24, 2021, an agreement was executed between an entity dcsc1ibed as "Strikepoints Consulting, LLC" and Defendant Cyberlux Corporation for certain consulting services (the "Strikepoint Consulting Agreement"), which called for, inter alia, installment payments of fixed liquidated sums owed by Defendants to Plaintiff, which also fell into arrears; WHEREAS, Plaintiffs filed its Complaint for breach of said agreements in the Circuit Court of the City of Richmond, Virginia (the "Court"), against Defendants in the civil action titled, Atlantic Wave Holdings, LLC and Secure Community, LLC v. Cyberlux Corporation and Mark D. Schmidt (Case No. CL22-3882) (the "Litigation"), which remains pending; WHEREAS, the Patties to this Agreement desire to resolve and settle any and all existing disputes between the Plaintiffs and Defendants and between Strikepoint and Defendants to eliminate uncertainty and facilitate final resolution of their respective relationships between the parties; and 6/15/2023, 5:50 PM Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.783 Page 19 of 164
claimallegation

Settlement caps existing litigation costs at $188,700, excluding later breach enforcement; full satisfaction requires all terms and notice w

Settlement caps existing litigation costs at $188,700, excluding later breach enforcement; full satisfaction requires all terms and notice within ten business days. Debtor release is immediate, creditor release follows first payment. It grants asset security interests and contemplates UCC memorialisation without proving perfection. Drone disclosures are demand-driven, subject to classification/restriction limits. Written modification, ten-day information deadline, three-day cure and Virginia venue clauses frame the later dispute; confidentiality has its own fourteen-day cure and enforcement-use exception.

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... Cyberlux _ Settlement_ Agreement_Final_002 _-1.pdf file:///C:/Users/willw/Downloads/Cyberlux_Settlernent_Agreernent... 5 of 15 in July 2023. Monthly payments shall continue on the first of each month, time being of the essence, until the total Settlement Consideration due to Plaintiffs is paid. Defendants agree to accelerate and pay the full outstanding balance of all sums owed under the Consent Judgment up to a total of FIVE THOUSAND DOLLARS ($5,000) per drone sold within twenty-one (21) days of Defendants, or any parent's, subsidiary's, affiliate's, or assign's first receipt of payment for any contract to purchase drone aircraft. £:. Monthly Installments Thereafter to Strikepoint: Defendants shall transmit to Strikepoint, by wire transmission.thirty-Six non-defeasible monthly payments of EIGHTEEN THOUSAND FWTY-FNE DOLLARS AND FIFTY-STX CENTS ($18,055.56) payable on ihe first day of each month, beginning in July of 2023. Monthly payments shall continue on the first of each month, time being of the essence, until the total Settlement Consideration due to Strikepoint is paid. Defendants agree to accelerate and pay the full outstanding balance of all sums owed under the Consent Judgment up to a total of FIVE THOUSAND DOLLARS ($5,000) per drone sold within twenty-one (21) days of Defendants, or any parent's, subsidiary's, affiliate's, or assign's first receipt of payment for any contract to purchase drone aircraft. Costs, including Legal Fees: Tn addition to the sums above, Defendants agree to pay all Plaintiffs' costs, including but not limited to, attorney's fees and expert witness fees, accrued in and with this Litigation within 60 (sixty) days of the full execution of this Agreement or upon tem1s agreed to by the parties. Subject to the following CAP. Plaintiffs agree to CAP costs and attorney's fees, for cost and attorney's fees relevant the matters dealt with in this settlement agreement, at 12% of the value of the total settlement or ONE HUNDRED EIGHTY-EIGHT 5 6/15/2023, 5:50 PM Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.787 Page 23 of 164
claimallegation

The stock provision reserves an option to refile negotiable-share claims if Pink Current/Caveat Emptor issues remain after December 31, 2023

The stock provision reserves an option to refile negotiable-share claims if Pink Current/Caveat Emptor issues remain after December 31, 2023, with a discretionary extension on credible evidence. Other sections promise reasonable compliance efforts and materially accurate financial statements. Non-disparagement ends December 31, 2023 and has fourteen-day notice/cure terms. These conditional rights are narrower than a guaranteed regulatory outcome.

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,.. Cyberlux~Settlement_ Agreement_Final_002_- l .pdf file:///C:/Users/willw/Downloads/Cyberlux_Settlement_Agreement. .. 3 of 15 Balance of Consulting Agreement: The parties agree to terminate and resolve any disputes arising out of the Strikepoint Consulting Agreement for consideration of: SIX HUNDRED FIFTY THOUSAND DOLLARS ($650,000), as the balance due and owing for installment payments under the Consulting Agreement between the parties. £: Total Value of the Consent Judgment: The total liquidated sum that shall be due and owing to Plaintiffs under the parties' Consent Judgment shall be ONE MILLION FIVE HUNDRED SEVENTY-TWO THOUSAND AND FIVE HUNDRED DOLLARS ($1,572,500), plus Plaintiffs' costs as defined in 4(d) (the "Settlement Consideration"), which is the sum of the outstanding installment payments owing in the IP Ag1~ement, the Strikepoint Consulting Agreement, and Plaintiffs' costs as appropriately allocated between Plaintiffs and Strikepoint below. Effect of Consent Judgment: The Consent Judgment shall be promptly entered jointly and severally against Defendants and in favor of Plaintiffs in exchange for payment of the full Settlement Consideration, which shall resolve the above styled matter. The parties agree that the Consent Judgment shall not be dischargeable, including by appeal or bankruptcy, in any manner other than by agreement of the parties, to the fullest extent pem,issible under the law, £: Stock. Notwithstanding the foregoing, the parties agree that entry of the Consent Judgment awarding FINAL judgment in favor of Plaintiffs and against Defendants shall resolve the pending Litigation. Notwithstanding entry of a Final Order, the parties herby agree that if the Cyberlux stock is not brought to current "Pink Status" and the Caveat Emptor legend and restriction is not remedied and removed on or before December 31, 2023, Plaintiffs shall have the option, at their 3 • 6/15/2023, 5:50 PM Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.785 Page 21 of 164
otherattribution

Defendants undertake the stated monthly and conditional per-drone settlement payments.

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Cyberlux _·settlement_ Agreement __ Final_002 _-1.pdf file:///C:/Users/willw/Downloads/Cyberlux_Settlement_Agreement... I of 15 EXHIBIT 1 SETTLEMENT AGREEMENT This Settlement Agreement (the "Agreement") is made as of this 1 Sthth day of June 2023, by and between ATLANTIC WAVE HOLDINGS, LLC, SECURE COMMUNITY, LLC (collectively, "Plaintiffs"), CYBERLUX CORPORATION AND MARK D. SCHMIDT (collectively, "Defendants"), and STRIKEPOINT CONSULTING, . LLC ("Strikepoint") a. separate party with some common interest holders to the Plaintiffs. Plaintiffs, Defendants, and Strikepoint shall collectively be refeiTed to as the "Parties to this Agreement" and Plaintiffs and Defendants shaHcollectively be rcfc1Tcd to as "Parties to the Litigation." RECITALS WHEREAS, Plaintiffs and Defendants entered into. an agreement on October 8, 2021, which compensated Plaintiffs for the reacquisition by Defendant Cyberlux of certain intellectual property in exchange for certain installment payments of fixed liquidated sums by Defendants to Plaintiffs and "Freely Trading" stock, which had fallen into arrears ("the JP Agreement"); WHEREAS, on September 24, 2021, an agreement was executed between an entity dcsc1ibed as "Strikepoints Consulting, LLC" and Defendant Cyberlux Corporation for certain consulting services (the "Strikepoint Consulting Agreement"), which called for, inter alia, installment payments of fixed liquidated sums owed by Defendants to Plaintiff, which also fell into arrears; WHEREAS, Plaintiffs filed its Complaint for breach of said agreements in the Circuit Court of the City of Richmond, Virginia (the "Court"), against Defendants in the civil action titled, Atlantic Wave Holdings, LLC and Secure Community, LLC v. Cyberlux Corporation and Mark D. Schmidt (Case No. CL22-3882) (the "Litigation"), which remains pending; WHEREAS, the Patties to this Agreement desire to resolve and settle any and all existing disputes between the Plaintiffs and Defendants and between Strikepoint and Defendants to eliminate uncertainty and facilitate final resolution of their respective relationships between the parties; and 6/15/2023, 5:50 PM Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.783 Page 19 of 164
otherattribution

Issuer must deliver shares upon the holder’s compliant conversion election.

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THE SECURITIES REPRESENTED BY THIS INSTRUMENT HA VE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL REASONABLY ACCEPT ABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933. CYBERLUX CORP. CONVERTIBLE PROMISSORY NOTE Principal Amount: $1,500,000.00 USD October 22, 2021 WHEREAS on October 22, 2021, RB Capital Partners , Inc., with its office s at 2856 Torrey Pines Road, La Jolla, California 92037 (the "Holder") loaned funds totaling , $1,500,000.00 to Cyber lux Corp., a Nevada corporation with its office at 800 Park Offices Drive.; Suite 3209; Research Triangle Park, NC 27709 (the "Company"). Payment for the loan was made directly to the Compa ny in the form of a Wire Transfer. WHEREAS the Compa ny and Holder further agreed that such services provided by the Holder to the Company would be evidenced in a convertible note, which convertible note would be convertible into shares of common stock of the Company at the rate of $0.25 in accordance with Section 3 below; NOW THEREFORE THIS AGREEMENT WITNESSES that for and in consideration of the mutual premises and the mutual covenants and agreements contained herein, the parties covenant and agree each with the other as follows: 1. Principal and Interest. 1.1 The Company , for value received, hereby promises to pay to the order of the Holder the sum of One Mi I lion Five Hundred Thousand Do liars ($1,500,000.00) , which amount represents the amount owed to Holder as of October 22, 2021. 1.2 This Convert ible Promi ssory Note (the "Note") shall bear five percent (5%) interest per annum. The Note is for a period of (24) months and cannot be converted until (6) months from the date first written above has passed. 1.3 Upon payment in full of the principal, this Note shall be surrendered to the Company for cancellat ion. 1 EXHIBIT 1 Page 9 Case 3:24-cv-01434-AJB-BJC Document 1-3 Filed 08/12/24 PageID.11 Page 2 of 7Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.895 Page 131 of 164
entityobservation

William Welter

Read the anchor · page 2
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -1- Case No. 3:24-cv-00482-RBM-VET DECLARATION OF WILLIAM WELTER MORTENSON TAGGART ADAMS LLP DECLARATION OF WILLIAM WELTER I, William Welter, declare as follows: 1. I am the Managing Director of Atlantic Wave Holdings, LLC, Secure Community, LLC, and Strikepoint, LLC (collectively, “Plaintiffs”) in the above- captioned matter. I have personal knowledge of the facts set forth herein and, if called upon to testify, could and would competently testify thereto. This declaration is submitted in support of Plaintiffs’ supplemental briefing on Defendant Cyberlux Corporation's Motion to Vacate the domesticated judgment (Dkt. No. 9) and to provide updates on the litigation, disputes, and payments surrounding the Settlement Agreement. 2. Plaintiffs initiated a straightforward collection action in California to enforce the Virginia Judgment against Cyberlux’s wholly-owned subsidiary, Datron, Inc., located in Vista, California. This action was necessary due to Defendants' consistent breaches of the settlement agreement and failure to comply with their payment obligations. 3. The original action in Virginia resulted in the Settlement Agreement (Dkt. No. 24-1) and the Amended Final Order and Judgment (“Virginia Judgment”) (Dkt. No. 9-2 at p. 29) which form the basis of Plaintiffs' collection efforts. 4. After Plaintiffs garnished Defendants’ funds held in PNC and Towne Bank accounts, Defendants filed an emergency motion seeking access to the garnished funds. Defendants sought declarations regarding the validity and enforceability of the settlement agreement. Attached as Exhibit A is a true and correct copy of Defendants’ filing. 5. The court initially allowed Cyberlux to access up to $317,000 for payroll purposes and $230,000 to pay Plaintiffs. This initial relief was granted to address alleged urgent payroll needs and partial payment obligations. Attached hereto as Exhibit B is a true and correct copy of the Court’s May 31, 2024 Order. Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.766 Page 2 of 164
entityobservation

Carol M. Tayloe

Read the anchor · page 113
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 COURT REPORTER'S CERTIFICATE I, Carol M. Tayloe, RMR, CMRS, CCR, certify that I recorded verbatim by stenotype the proceedings in the captioned cause, Richmond, Virginia, on August 27, 2024. I further certify that to the best of my knowledge and belief, the foregoing transcript constitutes a true and correct transcript of the said proceedings. Given under my hand this 27th day of August, 2024, at Norfolk, Virginia. _________________________________ Carol M. Tayloe Transcript of Corporate Designee of Plaintiff's Cyberlux Corporation - SOTR Conducted on August 27, 2024 8 PLANET DEPOS 888.433.3767 | WWW.PLANETDEPOS.COM Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.877 Page 113 of 164
entityobservation

Atlantic Wave Holdings, LLC

Read the anchor · page 2
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -1- Case No. 3:24-cv-00482-RBM-VET DECLARATION OF WILLIAM WELTER MORTENSON TAGGART ADAMS LLP DECLARATION OF WILLIAM WELTER I, William Welter, declare as follows: 1. I am the Managing Director of Atlantic Wave Holdings, LLC, Secure Community, LLC, and Strikepoint, LLC (collectively, “Plaintiffs”) in the above- captioned matter. I have personal knowledge of the facts set forth herein and, if called upon to testify, could and would competently testify thereto. This declaration is submitted in support of Plaintiffs’ supplemental briefing on Defendant Cyberlux Corporation's Motion to Vacate the domesticated judgment (Dkt. No. 9) and to provide updates on the litigation, disputes, and payments surrounding the Settlement Agreement. 2. Plaintiffs initiated a straightforward collection action in California to enforce the Virginia Judgment against Cyberlux’s wholly-owned subsidiary, Datron, Inc., located in Vista, California. This action was necessary due to Defendants' consistent breaches of the settlement agreement and failure to comply with their payment obligations. 3. The original action in Virginia resulted in the Settlement Agreement (Dkt. No. 24-1) and the Amended Final Order and Judgment (“Virginia Judgment”) (Dkt. No. 9-2 at p. 29) which form the basis of Plaintiffs' collection efforts. 4. After Plaintiffs garnished Defendants’ funds held in PNC and Towne Bank accounts, Defendants filed an emergency motion seeking access to the garnished funds. Defendants sought declarations regarding the validity and enforceability of the settlement agreement. Attached as Exhibit A is a true and correct copy of Defendants’ filing. 5. The court initially allowed Cyberlux to access up to $317,000 for payroll purposes and $230,000 to pay Plaintiffs. This initial relief was granted to address alleged urgent payroll needs and partial payment obligations. Attached hereto as Exhibit B is a true and correct copy of the Court’s May 31, 2024 Order. Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.766 Page 2 of 164
entityobservation

Secure Community, LLC

Read the anchor · page 2
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -1- Case No. 3:24-cv-00482-RBM-VET DECLARATION OF WILLIAM WELTER MORTENSON TAGGART ADAMS LLP DECLARATION OF WILLIAM WELTER I, William Welter, declare as follows: 1. I am the Managing Director of Atlantic Wave Holdings, LLC, Secure Community, LLC, and Strikepoint, LLC (collectively, “Plaintiffs”) in the above- captioned matter. I have personal knowledge of the facts set forth herein and, if called upon to testify, could and would competently testify thereto. This declaration is submitted in support of Plaintiffs’ supplemental briefing on Defendant Cyberlux Corporation's Motion to Vacate the domesticated judgment (Dkt. No. 9) and to provide updates on the litigation, disputes, and payments surrounding the Settlement Agreement. 2. Plaintiffs initiated a straightforward collection action in California to enforce the Virginia Judgment against Cyberlux’s wholly-owned subsidiary, Datron, Inc., located in Vista, California. This action was necessary due to Defendants' consistent breaches of the settlement agreement and failure to comply with their payment obligations. 3. The original action in Virginia resulted in the Settlement Agreement (Dkt. No. 24-1) and the Amended Final Order and Judgment (“Virginia Judgment”) (Dkt. No. 9-2 at p. 29) which form the basis of Plaintiffs' collection efforts. 4. After Plaintiffs garnished Defendants’ funds held in PNC and Towne Bank accounts, Defendants filed an emergency motion seeking access to the garnished funds. Defendants sought declarations regarding the validity and enforceability of the settlement agreement. Attached as Exhibit A is a true and correct copy of Defendants’ filing. 5. The court initially allowed Cyberlux to access up to $317,000 for payroll purposes and $230,000 to pay Plaintiffs. This initial relief was granted to address alleged urgent payroll needs and partial payment obligations. Attached hereto as Exhibit B is a true and correct copy of the Court’s May 31, 2024 Order. Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.766 Page 2 of 164
entityobservation

Cyberlux Corporation

Read the anchor · page 2
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -1- Case No. 3:24-cv-00482-RBM-VET DECLARATION OF WILLIAM WELTER MORTENSON TAGGART ADAMS LLP DECLARATION OF WILLIAM WELTER I, William Welter, declare as follows: 1. I am the Managing Director of Atlantic Wave Holdings, LLC, Secure Community, LLC, and Strikepoint, LLC (collectively, “Plaintiffs”) in the above- captioned matter. I have personal knowledge of the facts set forth herein and, if called upon to testify, could and would competently testify thereto. This declaration is submitted in support of Plaintiffs’ supplemental briefing on Defendant Cyberlux Corporation's Motion to Vacate the domesticated judgment (Dkt. No. 9) and to provide updates on the litigation, disputes, and payments surrounding the Settlement Agreement. 2. Plaintiffs initiated a straightforward collection action in California to enforce the Virginia Judgment against Cyberlux’s wholly-owned subsidiary, Datron, Inc., located in Vista, California. This action was necessary due to Defendants' consistent breaches of the settlement agreement and failure to comply with their payment obligations. 3. The original action in Virginia resulted in the Settlement Agreement (Dkt. No. 24-1) and the Amended Final Order and Judgment (“Virginia Judgment”) (Dkt. No. 9-2 at p. 29) which form the basis of Plaintiffs' collection efforts. 4. After Plaintiffs garnished Defendants’ funds held in PNC and Towne Bank accounts, Defendants filed an emergency motion seeking access to the garnished funds. Defendants sought declarations regarding the validity and enforceability of the settlement agreement. Attached as Exhibit A is a true and correct copy of Defendants’ filing. 5. The court initially allowed Cyberlux to access up to $317,000 for payroll purposes and $230,000 to pay Plaintiffs. This initial relief was granted to address alleged urgent payroll needs and partial payment obligations. Attached hereto as Exhibit B is a true and correct copy of the Court’s May 31, 2024 Order. Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.766 Page 2 of 164
entityobservation

Mark D. Schmidt

Read the anchor · page 8
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -7- Case No. 3:24-cv-00482-RBM-VET DECLARATION OF W. WELTER MORTENSON TAGGART ADAMS LLP As of the date of this filing, the Caveat Emptor status has not been removed. On September 1, 2024, I accessed OTCMarkets.com and searched for CYBL stock. Attached hereto as Exhibit K is a true and correct copy of the information I obtained from OTCMarkets.com regarding CYBL stock. While this dispute remains unresolved, it is not a subject of Plaintiffs' collection action, which deals solely with the enforcement of the amended final judgment and order. 34. I reviewed Defendants’ bank records obtained in discovery. These records confirmed that Defendants received a payment of $38.7 million from a US Government contract to supply drones to Ukraine on September 8, 2023. Due to extensive third-party financial information contained in the bank records, Plaintiffs are not filing the bank records publicly, but Plaintiffs will submit these records for the Court to review in camera upon the Court’s request. 35. Despite receiving a substantial $38 million payment from a US Government contract in September 2023, Defendants misused these funds for personal expenses and transfers instead of fulfilling their obligations under the settlement agreement. 36. Bank records obtained in discovery reveal that Defendants transferred significant sums of money to personal accounts, friends, and family members, beginning on the same day the $38 million was transferred into Cyberlux’s account. Instead of making the required payments to Plaintiffs, Defendant Mark D. Schmidt and his associates diverted these funds for personal use. Specific transfers include:  September 8, 2023: $250,000 phone transfer authorized by Mark Schmidt  September 11, 2023: $213,000 wire to Fletcher Jones Motorcars for a vehicle purchase  September 14, 2023: $187,500 phone transfer authorized by Mark Schmidt  September 19, 2023: $55,000 transfer to Schwab account Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.772 Page 8 of 164
entityobservation

J. Chapman Petersen

Read the anchor · page 78
Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PagelD.842 Page 78 of 164 J. Chapman Petersen CHAP PETERSEN jcp@petersenfirm.com Direct: 571-459-2510 & ASSOCIATES, PLC J. Chapman Petersen+* Sharon Kim Petersen Won Yung Uh +also admitted in DC Federico J. Zablah *also admitted in MD Christopher T. Robertson+ admitted in NY Dylan M. Phillips Patrick R. Corish+ Janice M. Jang^+ August 6, 2024 VIA ELECTRONIC MAIL Jimmy F. Robinson, Jr., Esq. 901 East Byrd Street Suite 1300 Richmond, VA 23219 Jimmy.robinson@ogletreedeakins.com Re: Cyberlux Corporation v. Atlantic Wave Holding, LLC, Case No. 240002919-0, In the Circuit Court of the City of Richmond Dear Mr. Robinson: Attached please find a proposed corporate designee notice for taking your client's deposition in the above matter. You will note that we name both Mr. Schmidt and Cyberlux as deponents. If you designate Mr. Schmidt as the corporate representative, then that would likely cover both requests. I've tentatively set this for Friday, August 23. If that date is unavailable, please let me know a date we can do this, preferably before the end of August. I've also set this tentatively for my office in Northern Virginia, assuming that may be more convenient for Mr. Schmidt. If not, then I will find a place in Richmond to do it, pursuant to Rule 4:5 of the Rules of the Supreme Court. Took forward to working with you and thanks, Very sincerely yqurs, J. Chapman Petersen, Esq JCP Enclosure Copy: Client 3970 Chain Bridge Road, Fairfax, Va. 22030 & 571-459-2512 ID 571-459-2307 - petersenfirm.com
entityobservation

Jimmy F. Robinson, Jr.

Read the anchor · page 18
Dated May 21. 2024 Respectfully Submitted, CYBERLUX CORPORATION LLC AND MARK D. SCHMIDT By Isl Jimmy F. Robinson. Jr. Jimmy F. Robinson, Jr., Esquire Virginia States Bar Number 43622 jimmy.robinson@ogletreedeakins.com Counselfor Defendants OGLETREE, DEAKINS, NASH, SMOAK & STEWART, P.C. 901 East Byrd Street, Suite 1300 Richmond, VA 23219 Tel.: (804) 663-2336 Fax: (855) 843-1809 CERTIFICATE OF SERVICE The undersigned counsel hereby certifies that on May 21, 2024, a copy of the foregoing document was served via electronic means upon the following Robert Keith Caudle, III Caudle and Caudle, P.C. 1910 Byrd Avenue, Suite 118 Richmond, VA 23230 p: 804-358-4961 f: 804-353-1036 robcaudle@caudleandcaudle.com Counselfor Plaintiffs CYBERLUX CORPORATION LLC AND MARKD. SCHMIDT By Isl Jimmy F. Robinson. Jr. JimmyF. Robinson, Jr., Esquire Virginia States Bar Number 43622 jimmy.robinson@ogletreedeakins.com Counselfor Defendants OGLETREE, DEAKINS, NASH, SMOAK & STEWART, P.C. 901 East Byrd Street, Suite 1300 Riverfront Plaza, West Tower Richmond, VA 23219 Tel.: (804) 663-2336 Fax: (855) 843-1809 Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.782 Page 18 of 164
entityobservation

RB Capital Partners, Inc.

Read the anchor · page 121
1 COMPLAINT FOR BREACH OF CONTRACT AND DECLARATORY RELIEF 4855-9015-5478, v. 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Sean C. Coughlin, Esq. (SBN 167900) scoughlin@noonanlance.com Ethan T. Boyer, Esq. (SBN 173959) eboyer@noonanlance.com Sara K. Gediman, Esq. (SBN 337792) sgediman@noonanlance.com NOONAN LANCE BOYER & BANACH LLP 701 Island Avenue, Suite 400 San Diego, California 92101 Telephone: (619) 780-0880 Facsimile: (619) 780-0877 Attorneys for Plaintiff RB Capital Partners, Inc. UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA RB CAPITAL PARTNERS, INC., a California Corporation, Plaintiff, vs. CYBERLUX CORPORATION, a Nevada Corporation; DOES 1 through 10, Defendants. Case No.: COMPLAINT FOR BREACH OF CONTRACT AND DECLARATORY RELIEF DEMAND FOR JURY TRIAL Plaintiff RB Capital Partners, Inc., by and through its attorneys, allege against Defendant Cyberlux Corporation, and Does 1-10, inclusive, as follows: THE PARTIES 1. RB Capital Partners, Inc , (“RB CAPITAL”) is, and at all times mentioned in this complaint was, a California corporation with its principal place of business in San Diego, California. RB CAPITAL is a venture capital lender to various emerging and technology-based industries. 2. RB CAPTIAL is informed and believes that Defendant Cyberlux Corporation (“CYBERLUX”) is, and at all times mentioned in this complaint was, a Nevada corporation, with its business mailing address in 800 Park Offices Dr., Suite 3209, Research Tria ngle Park, North Carolina 27709, and that CYBERLUX also maintains offices in San Diego County at 995 Joshua Way Suite A, Vista, California, 92081. RB CAPITAL is informed and believes that CYBERLUX was founded in 2000 and is a defense industry technology solutions company. '24 CV1434 BJC AJB Case 3:24-cv-01434-AJB-BJC Document 1 Filed 08/12/24 PageID.1 Page 1 of 6Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.885 Page 121 of 164
entityobservation

Brett Rosen

Read the anchor · page 136
IN WITNESS WHEREOF, Cyberlux Corp. has caused this Note to be executed in its corporate name and this Note to be dated, issued and delivered, all on the date first above written . Date: October 22, 2021 Date: October 22, 2021 CYBERLUX CORP. By~ Mark Schmidt Its: CEO & Director RB CAPITAL PARTNERS, INC. ~~£~ By: ______ _______ _ Brett Rosen Its: Managing Member 6 EXHIBIT 1 Page 14 Case 3:24-cv-01434-AJB-BJC Document 1-3 Filed 08/12/24 PageID.16 Page 7 of 7Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.900 Page 136 of 164
inferenceinference

The actual June7 ruling defeats a continuing May31-stay account, but its procedural basis does not itself adjudicate every settlement breach

The actual June7 ruling defeats a continuing May31-stay account, but its procedural basis does not itself adjudicate every settlement breach.

inferenceinference

Transfer totals can reconcile while their personal-purpose and unauthorised character remain unverified because the bank records are express

Transfer totals can reconcile while their personal-purpose and unauthorised character remain unverified because the bank records are expressly absent.

inferenceinference

Repeated complaints/notices and near-identical PDF copies must not multiply evidentiary independence; service dates, redactions and contract

Repeated complaints/notices and near-identical PDF copies must not multiply evidentiary independence; service dates, redactions and contract variants remain source-specific.

omissiongap

Bank records were expressly withheld; no underlying bank authentication, use-of-funds documentation, complete creditor ledger or conversion-

Bank records were expressly withheld; no underlying bank authentication, use-of-funds documentation, complete creditor ledger or conversion-performance records accompany the allegations.

Read the anchor · page 3
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -2- Case No. 3:24-cv-00482-RBM-VET DECLARATION OF W. WELTER MORTENSON TAGGART ADAMS LLP 6. Bank records obtained in discovery show that the same day the Court issued the temporary order, Cyberlux requested a check for $198,798.37 to pay its attorneys’ fees. 7. However, the same judge who signed the original order later found that Defendants' request for declaratory relief was improperly filed. In the June 7, 2024, Opinion and Order, the court dismissed Defendants' declaratory relief complaint and awarded Plaintiffs their attorneys' fees for defending against the improperly brought action. Attached hereto as Exhibit C is a true and correct copy of the Virginia Court’s June 7, 2024 Order. 8. Subsequently, on August 9, 2024, the court released $183,798.34 from PNC Bank and $4,862.86 from Towne Bank to Plaintiffs. Exhibits D and E are true and correct copies of the Orders releasing the remaining garnished funds to Plaintiffs. 9. On July 8, 2024, Cyberlux filed a Declaratory Relief action and a Complaint for Temporary Preliminary Injunction in Virginia. Attached hereto as Exhibit F is a true and correct copy of Defendants’ July 8, 2024 filings. 10. Despite these filings claiming the need for emergency relief, Defendants have done nothing to schedule a hearing or submit further briefing regarding their emergency. 11. Additionally, Defendants have ignored several letters from Plaintiffs' counsel regarding deposition scheduling, demonstrating their refusal to engage in the legal process. For instance, letters sent by Plaintiffs' counsel on August 6, 2024, August 9, 2024, and August 23, 2024, went unanswered. Attached hereto as Exhibits G, H, and I are true and correct copies of the letters Plaintiffs’ counsel sent to Defendants’ counsel that remain unanswered. 12. Defendants have also failed to respond to discovery requests and did not appear for a deposition scheduled for August 27, 2024, resulting in a non-appearance. Attached hereto as Exhibit J is a true and correct copy of the non-appearance documents related to Defendants’ failure to produce a witness on August 27, 2024. Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.767 Page 3 of 164
otherattribution

Complete supplied 164-page source reviewed at SHA-256 4151576a1cdd7c50eef3534c531abb35e2b078a1a17428ebc79f4db3545bf40e. Source assertions, o

Complete supplied 164-page source reviewed at SHA-256 4151576a1cdd7c50eef3534c531abb35e2b078a1a17428ebc79f4db3545bf40e. Source assertions, original visual features, filing/communication context and identified missing attachments are retained. SHA256 4151576a1cdd7c50eef3534c531abb35e2b078a1a17428ebc79f4db3545bf40e; version_abedb5ecf7da4ce3859caffc12ff8fe2. Verified full-source comparison to42, after full164-page reading of42:112 exact-equal text pages, all52 changed page deltas inspected, plus twelve direct material page image checks on43. All164 pages rendered and image-hash compared;42 were pixel-identical at scale1.5,122 differed. Durable42-43-text-comparison.json and42-43-render-comparison.json preserve page identities. Differences inspected include improved cover-sheet filled fields, OCR numbering/date artefacts, redaction and blank November22 holder signature. Original source43 extraction retained; no source42 text silently substituted.

Read the anchor · page 1
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Case No. 3:24-cv-00482-RBM-VET DECLARATION OF WILLIAM WELTER MORTENSON TAGGART ADAMS LLP David M. Keithly, State Bar No. 292101 dkeithly@mortensontaggart.com Sara K. Ross, State Bar No. 346153 sross@mortensontaggart.com MORTENSON TAGGART ADAMS LLP 300 Spectrum Center Drive, Suite 1200 Irvine, California 92618 Telephone: (949) 774-2224 Facsimile: (949) 774-2545 Attorneys for Plaintiffs and Counterclaim Defendants ATLANTIC WAVE HOLDINGS, LLC and STRIKEPOINT, LLC UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA ATLANTIC WAVE HOLDINGS, LLC, a Virginia limited liability company and STRIKEPOINT CONSULTING, LLC, a Virginia limited liability company, Plaintiffs, vs. CYBERLUX CORPORATION, a Nevada Corporation; MARK D. SCHMIDT, an individual; and DOES 1 to 50, Inclusive, Defendants. CASE NO. 3:24-cv-00482-RBM-VET Honorable Ruth Bermudez Montenegro DECLARATION OF WILLIAM WELTER IN SUPPORT OF PLAINTIFFS ATLANTIC WAVE HOLDINGS, LLC AND STRIKEPOINT CONSULTING, LLC’S UPDATE RE: MOTION TO VACATE Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.765 Page 1 of 164
questionquestion

Which bank records, authorised purposes and complete payment ledger resolve the transfer allegations and creditor balances?

questionquestion

What August26 email and proof of actual notice/service explain the August9/August24 certificate tension and failure to appear?

questionquestion

What conversion election, certificate delivery, amendment and debt ledger resolve RB’s disputed November22 conversion and first-note balance

What conversion election, certificate delivery, amendment and debt ledger resolve RB’s disputed November22 conversion and first-note balance?

distillatequestion

CONNECT

Reviewed relationships

The canvas follows the database: source to DISTIL record, DISTIL record to knowledge object, then reviewed relationship. Position alone means nothing.

The embedded RB civil cover sheet visibly identifies RB Capital and Cyberlux, San Diego/Durham counties, diversity basis, other-contract classification, original proceeding, $5,686,960 demand and jury request, dated August 12, 2024. Plaintiff citizenship is ticked as citizen of this state rather than corporate category, while complaint describes a corporation. The cover sheet is administrative metadata and does not replace the complaint.qualifiesRB complaint filed August 12 in SDCA 3:24-cv-01434 alleges defaults on five notes and claims July 15 principal $5,168,000 plus interest $518,960 = $5,686,960, correctly summed. First-note principal $1,418,000 includes stated $250,000 December 19 credit but is not simply $1.5m minus that credit; underlying capitalisation ledger is absent. RB disputes alleged December 2023 conversion of November 22 debt and seeks declaratory relief, damages and fees; no judgment appears here.

Own complete cover-sheet rendering clarifies administrative fields missing visually in42 despite equal native text.

50%
Confidence 75%Link weight 50%
Welter signs September 3, 2024 as managing director of AWH, Secure Community and Strikepoint, supporting the California update. He alleges no regular payments after May, repeated unanswered July–December 2023 drone-information requests, no agreed settlement amendment, and threatened collection assets. These are adverse creditor testimony, not findings that every disputed obligation was breached.supportsWelter signs September 3, 2024 as managing director of AWH, Secure Community and Strikepoint, supporting the California update. He alleges no regular payments after May, repeated unanswered July–December 2023 drone-information requests, no agreed settlement amendment, and threatened collection assets. These are adverse creditor testimony, not findings that every disputed obligation was breached.

Same declaration verified across all pages; support means matching representation, not independent corroboration.

50%
Confidence 75%Link weight 50%
July 8 separate injunction action CL24002919 and declaratory action CL24002960 repeat oral-modification/overpayment theories and seek to halt enforcement across states. Declaratory complaint appears twice as service copies, not two independent claims. Secure Community return shows July 19 personal service at 4 pm and July 25 filing; AWH return page70 is blank. Issued summonses and registered-agent designation do not establish service wherever return fields are uncompleted.supportsRepeated complaints/notices and near-identical PDF copies must not multiply evidentiary independence; service dates, redactions and contract variants remain source-specific.

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
RB complaint filed August 12 in SDCA 3:24-cv-01434 alleges defaults on five notes and claims July 15 principal $5,168,000 plus interest $518,960 = $5,686,960, correctly summed. First-note principal $1,418,000 includes stated $250,000 December 19 credit but is not simply $1.5m minus that credit; underlying capitalisation ledger is absent. RB disputes alleged December 2023 conversion of November 22 debt and seeks declaratory relief, damages and fees; no judgment appears here.supportsWhat conversion election, certificate delivery, amendment and debt ledger resolve RB’s disputed November22 conversion and first-note balance?

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
June 7 signed opinion holds the underlying dismissed case final and denies declaratory relief improperly brought by motion in that case, dissolving the May 31 injunction before its scheduled expiry. It denies creditor sanctions and debtor fees, finds creditor entitlement to reasonable defence fees but reserves amount pending affidavit within seven days. It records initial April garnishments dismissed for a future June 28, 2024 judgment-date error and replacements outstanding. It does not decide all alleged settlement breaches or grant the broad injunction sought.supportsThe actual June7 ruling defeats a continuing May31-stay account, but its procedural basis does not itself adjudicate every settlement breach.

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
Four attached notes dated October 22, November 8, November 22, 2021 ($1.5m each) and May 23, 2022 ($500,000) provide 5% annual interest, 24-month terms, no conversion for six months and $0.25 conversion, with 4.99% beneficial ownership cap. Holder elects conversion in writing with note delivery; issuer must deliver shares within twenty business days and give five-business-day prepayment notice after repayment demand. Split provisions say conversion price is affected. Signatures of both sides appear on three; November 22 copy has issuer signature but blank holder line.supportsWhat conversion election, certificate delivery, amendment and debt ledger resolve RB’s disputed November22 conversion and first-note balance?

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
May 31 signed order temporarily lifts enforcement up to $550,000 until June 11 at 5 pm, authorising up to $317,000 payroll including consultants and $230,000 settlement payments, requiring payment records in camera and payroll proof within 48 hours. It restrains new garnishments temporarily and takes other relief under advisement. Permission to use funds is not proof they were paid.supportsThe actual June7 ruling defeats a continuing May31-stay account, but its procedural basis does not itself adjudicate every settlement breach.

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
Embedded April 18 Schmidt declaration claims changed payment timing, $167,402.56 overage and continuing compliance. Its twelve listed payments sum $779,616.14: $595,616.14 AWH and $184,000 Strikepoint, whereas prose claims $254,000 Strikepoint, a $70,000 gap. $1,110,363.89 less $595,616.14 = $514,747.75, not printed $591,102.45, a $76,354.70 difference. Paragraph 8 is visibly redacted and is not reconstructed; signature dated April 18 Vienna is visible. Underlying wire confirmations and Grimes declaration referenced there are not included in this embedded five-page extract.supportsRepeated complaints/notices and near-identical PDF copies must not multiply evidentiary independence; service dates, redactions and contract variants remain source-specific.

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
August 27 nonappearance transcript records Petersen with Welter, no witness, ending 10:11 am. Petersen says his team forwarded an August 26 5:48 pm email saying witness would not appear; before that he had no response or motion to quash. This qualifies an absolute no-notice account. Reporter Tayloe signs certification. Case number on cover differs from spoken number; isolated “afternoon” contrasts with 10:11 am closure. Transcript records counsel’s proffer, not sworn designee answers or a sanctions finding.supportsWhat August26 email and proof of actual notice/service explain the August9/August24 certificate tension and failure to appear?

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
Four attached notes dated October 22, November 8, November 22, 2021 ($1.5m each) and May 23, 2022 ($500,000) provide 5% annual interest, 24-month terms, no conversion for six months and $0.25 conversion, with 4.99% beneficial ownership cap. Holder elects conversion in writing with note delivery; issuer must deliver shares within twenty business days and give five-business-day prepayment notice after repayment demand. Split provisions say conversion price is affected. Signatures of both sides appear on three; November 22 copy has issuer signature but blank holder line.supportsWhat does this update establish independently of Welter’s allegations?

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
August 27 notice covers twenty topics: operations, ownership, sale efforts, valuations, assets, governance, buyers, payments, drones, settlement, judgment, conflicts, elections, subsidiaries, OTC status, related loans and finance. Filed copy bears August 9 upload/August 12 clerk processing. Both visible notice service certificates have handwritten August 24, whereas letters and later transcript say August 9 service. Preserve the distinction; questions about acquisitions/assets are discovery topics, not proof those facts occurred.supportsWhat does this update establish independently of Welter’s allegations?

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
Welter says discovery bank records show September 8, 2023 receipt of $38.7 million for the drone contract and a May 31, 2024 request for a $198,798.37 attorney-fee check. He explicitly withholds bank records from public filing because of third-party financial information and offers them in camera upon request. The exhibit therefore supports the declarant’s account, not direct examination of those transactions.supportsWhich bank records, authorised purposes and complete payment ledger resolve the transfer allegations and creditor balances?

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
Welter says discovery bank records show September 8, 2023 receipt of $38.7 million for the drone contract and a May 31, 2024 request for a $198,798.37 attorney-fee check. He explicitly withholds bank records from public filing because of third-party financial information and offers them in camera upon request. The exhibit therefore supports the declarant’s account, not direct examination of those transactions.supportsTransfer totals can reconcile while their personal-purpose and unauthorised character remain unverified because the bank records are expressly absent.

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
Welter says discovery bank records show September 8, 2023 receipt of $38.7 million for the drone contract and a May 31, 2024 request for a $198,798.37 attorney-fee check. He explicitly withholds bank records from public filing because of third-party financial information and offers them in camera upon request. The exhibit therefore supports the declarant’s account, not direct examination of those transactions.supportsBank records were expressly withheld; no underlying bank authentication, use-of-funds documentation, complete creditor ledger or conversion-performance records accompany the allegations.

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
August 9 signed orders direct recovery of $183,798.34 from PNC for Cyberlux and $4,862.86 from Towne Bank for Schmidt, $188,661.20 combined. Welter says those funds were credited. His August balances are AWH/SC principal $430,295.59 plus interest $95,000.62 = $525,296.21; Strikepoint $372,669.40 plus $79,916.69 = $452,586.09. Component totals equal $977,882.30, one cent below printed $977,882.31. No complete account ledger is attached.supportsBank records were expressly withheld; no underlying bank authentication, use-of-funds documentation, complete creditor ledger or conversion-performance records accompany the allegations.

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
August 9 signed orders direct recovery of $183,798.34 from PNC for Cyberlux and $4,862.86 from Towne Bank for Schmidt, $188,661.20 combined. Welter says those funds were credited. His August balances are AWH/SC principal $430,295.59 plus interest $95,000.62 = $525,296.21; Strikepoint $372,669.40 plus $79,916.69 = $452,586.09. Component totals equal $977,882.30, one cent below printed $977,882.31. No complete account ledger is attached.supportsWhat does this update establish independently of Welter’s allegations?

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
August 9 signed orders direct recovery of $183,798.34 from PNC for Cyberlux and $4,862.86 from Towne Bank for Schmidt, $188,661.20 combined. Welter says those funds were credited. His August balances are AWH/SC principal $430,295.59 plus interest $95,000.62 = $525,296.21; Strikepoint $372,669.40 plus $79,916.69 = $452,586.09. Component totals equal $977,882.30, one cent below printed $977,882.31. No complete account ledger is attached.supportsWhich bank records, authorised purposes and complete payment ledger resolve the transfer allegations and creditor balances?

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
Welter lists alleged transfers: September 8 $250,000 phone transfer; September 11 $213,000 Fletcher Jones vehicle purchase; September 14 $187,500 phone transfer; September 19 $55,000 Schwab; September 20 $600,000 phone transfer; September 26 $692,689.64 debit memo; October 16 $850,000 Schmidt Edward Jones and $994,460 G2G Global; October 23 $6,000 Schwab; November 7 $25,000 Schmidt; January 4 $108,555.42 Schmidt; January 29 $25,000 Schmidt; February 7 $20,000 Schmidt; March 6 $290,000 Schmidt; April 11 $50,000 Schmidt, $25,000 Holly Schmidt and $25,000 Schmidt. These sum $4,417,205.06 as stated. Personal misuse and lack of authorisation remain Welter’s characterisations without underlying bank or purpose records.supportsTransfer totals can reconcile while their personal-purpose and unauthorised character remain unverified because the bank records are expressly absent.

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
Welter says discovery bank records show September 8, 2023 receipt of $38.7 million for the drone contract and a May 31, 2024 request for a $198,798.37 attorney-fee check. He explicitly withholds bank records from public filing because of third-party financial information and offers them in camera upon request. The exhibit therefore supports the declarant’s account, not direct examination of those transactions.supportsWhat does this update establish independently of Welter’s allegations?

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
June 7 signed opinion holds the underlying dismissed case final and denies declaratory relief improperly brought by motion in that case, dissolving the May 31 injunction before its scheduled expiry. It denies creditor sanctions and debtor fees, finds creditor entitlement to reasonable defence fees but reserves amount pending affidavit within seven days. It records initial April garnishments dismissed for a future June 28, 2024 judgment-date error and replacements outstanding. It does not decide all alleged settlement breaches or grant the broad injunction sought.supportsWhat does this update establish independently of Welter’s allegations?

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
July 12, 2022 $250,000 note likewise has 5% annual interest, 24-month term, six-month conversion bar and 4.99% cap, but $0.10 conversion and price expressly unaffected by forward/reverse splits. Both issuer and holder signatures appear. These distinct economics must not be overwritten with earlier-note boilerplate.supportsRepeated complaints/notices and near-identical PDF copies must not multiply evidentiary independence; service dates, redactions and contract variants remain source-specific.

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
Welter lists alleged transfers: September 8 $250,000 phone transfer; September 11 $213,000 Fletcher Jones vehicle purchase; September 14 $187,500 phone transfer; September 19 $55,000 Schwab; September 20 $600,000 phone transfer; September 26 $692,689.64 debit memo; October 16 $850,000 Schmidt Edward Jones and $994,460 G2G Global; October 23 $6,000 Schwab; November 7 $25,000 Schmidt; January 4 $108,555.42 Schmidt; January 29 $25,000 Schmidt; February 7 $20,000 Schmidt; March 6 $290,000 Schmidt; April 11 $50,000 Schmidt, $25,000 Holly Schmidt and $25,000 Schmidt. These sum $4,417,205.06 as stated. Personal misuse and lack of authorisation remain Welter’s characterisations without underlying bank or purpose records.supportsWhich bank records, authorised purposes and complete payment ledger resolve the transfer allegations and creditor balances?

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
RB complaint filed August 12 in SDCA 3:24-cv-01434 alleges defaults on five notes and claims July 15 principal $5,168,000 plus interest $518,960 = $5,686,960, correctly summed. First-note principal $1,418,000 includes stated $250,000 December 19 credit but is not simply $1.5m minus that credit; underlying capitalisation ledger is absent. RB disputes alleged December 2023 conversion of November 22 debt and seeks declaratory relief, damages and fees; no judgment appears here.supportsWhat does this update establish independently of Welter’s allegations?

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
RB complaint filed August 12 in SDCA 3:24-cv-01434 alleges defaults on five notes and claims July 15 principal $5,168,000 plus interest $518,960 = $5,686,960, correctly summed. First-note principal $1,418,000 includes stated $250,000 December 19 credit but is not simply $1.5m minus that credit; underlying capitalisation ledger is absent. RB disputes alleged December 2023 conversion of November 22 debt and seeks declaratory relief, damages and fees; no judgment appears here.supportsBank records were expressly withheld; no underlying bank authentication, use-of-funds documentation, complete creditor ledger or conversion-performance records accompany the allegations.

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
Four attached notes dated October 22, November 8, November 22, 2021 ($1.5m each) and May 23, 2022 ($500,000) provide 5% annual interest, 24-month terms, no conversion for six months and $0.25 conversion, with 4.99% beneficial ownership cap. Holder elects conversion in writing with note delivery; issuer must deliver shares within twenty business days and give five-business-day prepayment notice after repayment demand. Split provisions say conversion price is affected. Signatures of both sides appear on three; November 22 copy has issuer signature but blank holder line.supportsRepeated complaints/notices and near-identical PDF copies must not multiply evidentiary independence; service dates, redactions and contract variants remain source-specific.

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
Welter lists alleged transfers: September 8 $250,000 phone transfer; September 11 $213,000 Fletcher Jones vehicle purchase; September 14 $187,500 phone transfer; September 19 $55,000 Schwab; September 20 $600,000 phone transfer; September 26 $692,689.64 debit memo; October 16 $850,000 Schmidt Edward Jones and $994,460 G2G Global; October 23 $6,000 Schwab; November 7 $25,000 Schmidt; January 4 $108,555.42 Schmidt; January 29 $25,000 Schmidt; February 7 $20,000 Schmidt; March 6 $290,000 Schmidt; April 11 $50,000 Schmidt, $25,000 Holly Schmidt and $25,000 Schmidt. These sum $4,417,205.06 as stated. Personal misuse and lack of authorisation remain Welter’s characterisations without underlying bank or purpose records.supportsBank records were expressly withheld; no underlying bank authentication, use-of-funds documentation, complete creditor ledger or conversion-performance records accompany the allegations.

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
August 27 notice covers twenty topics: operations, ownership, sale efforts, valuations, assets, governance, buyers, payments, drones, settlement, judgment, conflicts, elections, subsidiaries, OTC status, related loans and finance. Filed copy bears August 9 upload/August 12 clerk processing. Both visible notice service certificates have handwritten August 24, whereas letters and later transcript say August 9 service. Preserve the distinction; questions about acquisitions/assets are discovery topics, not proof those facts occurred.supportsRepeated complaints/notices and near-identical PDF copies must not multiply evidentiary independence; service dates, redactions and contract variants remain source-specific.

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
August 27 notice covers twenty topics: operations, ownership, sale efforts, valuations, assets, governance, buyers, payments, drones, settlement, judgment, conflicts, elections, subsidiaries, OTC status, related loans and finance. Filed copy bears August 9 upload/August 12 clerk processing. Both visible notice service certificates have handwritten August 24, whereas letters and later transcript say August 9 service. Preserve the distinction; questions about acquisitions/assets are discovery topics, not proof those facts occurred.supportsWhat August26 email and proof of actual notice/service explain the August9/August24 certificate tension and failure to appear?

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%
August 27 nonappearance transcript records Petersen with Welter, no witness, ending 10:11 am. Petersen says his team forwarded an August 26 5:48 pm email saying witness would not appear; before that he had no response or motion to quash. This qualifies an absolute no-notice account. Reporter Tayloe signs certification. Case number on cover differs from spoken number; isolated “afternoon” contrasts with 10:11 am closure. Transcript records counsel’s proffer, not sworn designee answers or a sanctions finding.supportsWhat does this update establish independently of Welter’s allegations?

Specifically named source propositions support the bounded distinction or question.

50%
Confidence 75%Link weight 50%

WEIGH

Explained weighting

A score appears only when its components and change threshold are published.

No published WEIGH run

The active Website Edition contains no applied score snapshot for this source or its connected objects. That means not assessed—not zero.