Declaration of William Welter — documented Cyberlux transfers, ECF No. 29-1

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 -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

Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PagelD.813 Page 49 of 164 Exhibit D

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

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 -5- Case No. 3:24-cv-00482-RBM-VET DECLARATION OF W. WELTER MORTENSON TAGGART ADAMS LLP Would be nice to conclude these matters. Thanks" (Dkt. No. 9-3 at p. 55). Again, Cyberlux did not respond. 24. On October 9, 2023, I made another request for basic information: "Can you advise how many drones were sold?" (Dkt. No. 9-3 at p. 62). Once more, Cyberlux ignored this request for information they agreed to promptly provide under the settlement agreement. 25. On November 2, 2023, I again asked for information related to drone sales: “Also, the initial drone transaction was mid-September. If the transaction has proceeded and if they pay the $5k per drone, that would conclude matters (beside the stock issues). As mentioned to you before, our goal has been to make a clean cut between the two companies. The proposed / new SA appears to prolong that by another 3 years. Lastly, any documents relevant to the drone transaction will be helpful. I’ve held back on requests for same thus far, however, I think reviewing the documents on the drone transaction will now be very helpful” (Dkt. No. 9-3 at p. 75). Cyberlux ignored this request as well. 26. Finally, on December 5, 2023, I once again requested information about drone sales: “We are still concerned about the Drone sales and the necessity to fulfill all the terms of and under the settlement agreement ($5k per Drone) upon the sale. As mentioned we have been dealing with this matter since fall 2021 and are ready to conclude. To that end, I ask again can you please send documentation relevant to the Drone sales” (Dkt. No. 9-3 at p. 80). Cyberlux also ignored this request. 27. The settlement agreement defines requested information as being late if not received within ten (10) calendar days 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. 11, § 21). 28. Defendants' last regular payment was made in May 2024. Since then, Defendants have not made any further payments. This cessation of payments, coupled Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.770 Page 6 of 164

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

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 -8- Case No. 3:24-cv-00482-RBM-VET DECLARATION OF W. WELTER MORTENSON TAGGART ADAMS LLP  September 20, 2023: $600,000 phone transfer authorized by Mark Schmidt  September 26, 2023: $692,689.64 member debit memo  October 16, 2023: $850,000 transfer to Schmidt's Edward Jones account  October 16, 2023: $994,460 transfer to G2G Global LTD  October 23, 2023: $6,000 transfer to Schwab account  November 7, 2023: $25,000 transfer to Schmidt  January 4, 2024: $108,555.42 transfer to Schmidt  January 29, 2024: $25,000 transfer to Schmidt  February 7, 2024: $20,000 transfer to Schmidt  March 6, 2024: $290,000 transfer to Schmidt  April 11, 2024: $50,000 transfer to Schmidt  April 11, 2024: $25,000 transfer to Holly Schmidt  April 11, 2024: $25,000 transfer to Schmidt 37. The total amount of these transfers is $4,417,205.06. These unauthorized transfers are a clear violation of the settlement agreement, which required Defendants to make timely payments to Plaintiffs and provided for accelerated payments upon receipt of substantial funds from drone contracts (Dkt. No. 24-1 at pp. 5-6, §§ 4.a- 4.c). 38. Additionally, on August 12, 2024, Brett Rosen, on behalf of RB Capital Partners, Inc., filed a case against Cyberlux Corporation for breach of contract and declaratory relief in the United States District Court for the Southern District of California. This complaint alleges that Cyberlux has defaulted on several promissory notes amounting to $5,686,960. Attached hereto as Exhibit L is a true and correct copy of the complaint filed by RB Capital Partners, Inc. /// /// /// Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.773 Page 9 of 164

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

Case 3:24-cv-00196-RBM-VET Document 21-1 Filed 04/18/24 PagelD.535 Page 3 of 25 II DocuSign Envelope ID: D741C8C4-A675-4EF1-BE7F-A4435D9C5383 1 Judgment provides, in part, that "the parties hereto have reached a settlement 2 agreement that resolves the current need for continuing litigation." Settlement 3 Judgment at Page 1. Further, in Plaintiffs' state court action filed in San Diego County 4 Supe1ior Court and removed to this Court, Plaintiffs alleged: "In connection with the 5 Settlement Agreement, on June 28, 2023, the Court in the Underlying Lawsuit entered 6 an Amended Final Order and Judgment .... " Complaint, at Paragraph 18 [Dckt. 1, Ex. 7 A]. 8 4. As conceded by Plaintiffs in their underlying state court complaint, 9 provided that with respect to the settlement payment to be made by Cyberlux, "Under 10 the terms of the Settlement Agreement in paragraph 4(a) Defendants agreed to 11 specific payment terms." Complaint, at Paragraph 19 [Dckt. 1, Ex. A]. 12 5. Following the Settlement Agreement reached in the Virginia Action, 13 Cyberlux made payments to Atlantic Wave as follows: 14 Date 15 16 17 18 19 20 21 22 23 7/3/2023 7/3/2023 7/3/2023 9/8/2023 9/8/2023 10/4/2023 11/2/2023 12/4/2023 1/2/2024 2/1/2024 3/1/2024 4/1/2024 TOTAL Payee Atlantic Wave Holdings, LLC Atlantic Wave Holdings, LLC Atlantic Wave Holdings, LLC Atlantic Wave Holdings, LLC Strikepoint Consulting, LLC Strikepoint Consulting, LLC Strikepoint Consulting, LLC Strikepoint Consulting, LLC Strikepoint Consulting, LLC Strikepoint Consulting, LLC Strikepoint Consulting, LLC Strikepoint Consulting, LLC Amount $10,737.50 $5,364.75 $4,513.89 $575,000.00 $50,000.00 $20,000.00 $19,000.00 $19,000.00 $19,000.00 $19,000.00 $19,000.00 $19,000.00 $779,616.14 24 True and cmrect copies of the wire payment confirmations are attached hereto as 25 Exhibit C. As more fully set forth in the concurrently filed Declaration of Douglas 26 Grimes, Cyberlux' s payments were either made by the deadlines provided in the 27 Settlement Agreement (including the 3-day cure period), or were timely based upon 2 8 the Plaintiffs' oral modification of the Settlement Agreement, upon which Cyberlux 3 3:24-cv-00196-RBM-VET DECLARATION OF MARK D. SCHMIDT IN OPPOSITION TO ATLANTIC WA VE'S MOTION TO STRIKE Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.802 Page 38 of 164

Case 3:24-cv-00196-RBM-VET Document 21-1 Filed 04/18/24 PagelD.536 Page 4 of 25 II DocuSign Envelope ID: 0741 C8C4-A675-4EF1-BE7F-A4435D9C5383 1 relied. 2 6. In fact, as more fully explained in the concun-ently filed Declaration of 3 Douglas G1imes, the parties agreed to a different payment plan post-settlement. 4 Further, as confirmed by William Welter, Atlantic Wave's principal and legal 5 counsel, following Cyberlux's overpayment of September 8, 2023, equal to $575,000, 6 Cyberlux had an "overage" of $167,402.56 to apply to future payments. 7 7. Under the Settlement Agreement, the combined principal amount owed 8 to Strikepoint was $650,000, and the combined principal amount owed to Atlantic 9 Wave was $1,110,363.89. To date, $254,000 has been paid to Strikepoint, leaving a 10 principal balance of $396,000, and $595,616.14 has been paid to Atlantic Wave, 11 leaving a principal balance of $591,102.45. 12 13 14 15 16 17 18 19 20 21 9. Plaintiffs and I and Cyberlux also have a dispute regarding whether 22 Cyberlux continues to owe Atlantic Wave payments pursuant to a patent license 23 agreement which was procured through misrepresentations, undue influence, and 24 oven-eaching by Plaintiffs in the Virginia litigation. Cyberlux contends that this 25 patent license agreement and the resultant settlement ofthat agreement was procured 26 through misrepresentation, undue influence and oven-eaching because Mr. Welter, a 27 Florida licensed lawyer, did not advise me to obtain separate counsel in accordance 28 with Florida Rule of Professional Responsibility 4-4.3. 4 3:24-cv-00196-RBM-VET DECLARATION OF MARK D. SCHMIDT IN OPPOSITION TO ATLANTIC WA VE'S MOTION TO STRIKE Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.803 Page 39 of 164

Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PagelD.805 Page 41 of 164 Exhibit B

Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PagelD.808 Page 44 of 164 Exhibit C

Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PagelD.813 Page 49 of 164 Exhibit D

Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PagelD.819 Page 55 of 164 Exhibit F

.. ---&arvicw,ilCHl\ff)ND CITY cc ILIPSCOMB at 2024JUL 11 09:11 CL24002919-00 SERVICE OTHER THAN BY VIRGINIA SHERIFF Case No. CL24002919-00 ............................................. .. COMMONWEALTH OF VIRGINIA VA . .COOE §§ s.01-293, s.01-320, s.OJ-325 Service No. t ......................................... (Clerk's use only) .RICHMOND.CITY ...................................................................... ___ ,_ ........ Circuit Court .CYBERLUX CORPORATION.......................................................... v. ATLANTIC WA VE.HOLDINGS,_LLC .......................................... 1 . . SECURE COMMUNITY,.LLC~RYAN BROWN, PLLC,1739CLARENDON BLVD,.ARLINGTON,.VA 22209-.................................... . is the name and address of the person upon whom service of the following is to be made: [ ] Summons and Complaint [X) COMPLAINT .................................................................................................................................................................................................................... : I, the undersigned, swear/affirm that 1. [ ] I am an official or an employee ofan official who is authorized to serve proce.~s of the type described in the attached Proof of Service and my title and:bailiwick are as follows: ........................................................... ___ ......................................................................................................... ,_ .............................................. . or, am a private process server (list name, address and telephone number below) . . A .. "'S,.f<w{t~UtJ-t.t£.J1,Ut,.:,,412(:f.z.~ .... IC4 A,1117'"-t-J,.a or, 1 U [ ] ram an investigator employed by an attorney for the Commonwealth or the lndigentDefense Commis~ion and have retired or resigned from my prior position as a law-enforcement officer in good standing. l.affinn that the sheriff for the jurisdiction· where process was served has agreed that such investigators may serve process. (Lisf name, tide and agency below.) • .................................................................... "' ...................... _. __ ............................ "" ..................................................................................................... 1 2. I am not a party to, or olherwise interested in, the subject matter in controversy in this case. j 3'. I am 18 years of age or older. 4. l served, as shown below, the above-named person upon whom service of process was to be made with copies desc bed abovi,::_ Date and time of -ervice· . -:Ji/ '1/ v-:{ .. _.9,. 'l.::IC,j?M., ....... -.............................. -.......................... 1 PMlacheodof sefrvic~· •••• ../. I }i.ct~~1~.~~·c~J,, .. , .. VA--................. 1 . et o service: r-;;;;;;:;:::-=:~~---- Personal Service [ ] • Not Found RECEIVED ANO FILED Being unable to make personal service, a copy was delivered in the following manner: CIRCUIT COURT [ ] Delivery to family member (not temporary sojolllller or guest) age 16 or older at 2 : • usual place of abode of person to be served aft.er giving information of its purport. JUL 2 5 2024 • List name, age of recipient, and relation of recipient lo party ................................... .. EDWARD F. JEWETI: CLERK BY D.C. [ ] Posted on front.door or such olher door as appears to be the main entrance of usual place of abode (other authorized recipient not found). [ ] (Garnishment_ Summons Only, § 8.01-SI 1) Copy mailed to judgment debtor after serving the garnishee on date of service below unless a different date of mailing is shown. Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.826 Page 62 of 164

COMMONWEALTH OF VIRGINIA RICHMOND CITY CIRCUIT COURT Civil Division 400 NORTH 9TH STREET RICHMOND VA 23219 (804) 646-6506 Summons To: ATLANTIC WA VE HOLDINGS LLC RYANBROWN,PLLC 1739 CLARENDON BL VD ARLINGTON VA 22209 Case No. 760CL24002960-00 The party upon whom this summons and the attached complaint are served is hereby notified that unless within 21 days after such service, response is made by filing in the clerk'sJoffice of this court a pleading in writing, in proper legal form, the allegations and charges rn:ay be taken as admitted and the court may enter an order, judgment, or decree against such arty either by default or after hearing evidence. Appearance in person is not required by this summons. Done in the name of the Commonwealth of Virginia on,Th sday, 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.828 Page 64 of 164

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

Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PagelD.841 Page 77 of 164 Exhibit G

Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PagelD.847 Page 83 of 164 Exhibit H

Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PagelD.868 Page 104 of 164 Exhibit J

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 VIRGINIA: IN THE CIRCUIT COURT OF THE CITY OF RICHMOND CYBERLUX CORPORATION ) and MARK D. SCHMIDT, ) Individually, )Case No.CL24002019-00 Plaintiffs, ) V ) ATLANTIC WAVE HOLDINGS, LLC,) and SECURE COMMUNITY, LCC, ) Defendants. ) STATEMENT OF NONAPPEARANCE Richmond, Virginia August 27, 2024 10:00 a.m. Job No. 549531 Pages 1-8 Reported by: Carol M. Tayloe, RMR, CMRS, CRR Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.870 Page 106 of 164

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

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

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

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 -5- Case No. 3:24-cv-00482-RBM-VET DECLARATION OF W. WELTER MORTENSON TAGGART ADAMS LLP Would be nice to conclude these matters. Thanks" (Dkt. No. 9-3 at p. 55). Again, Cyberlux did not respond. 24. On October 9, 2023, I made another request for basic information: "Can you advise how many drones were sold?" (Dkt. No. 9-3 at p. 62). Once more, Cyberlux ignored this request for information they agreed to promptly provide under the settlement agreement. 25. On November 2, 2023, I again asked for information related to drone sales: “Also, the initial drone transaction was mid-September. If the transaction has proceeded and if they pay the $5k per drone, that would conclude matters (beside the stock issues). As mentioned to you before, our goal has been to make a clean cut between the two companies. The proposed / new SA appears to prolong that by another 3 years. Lastly, any documents relevant to the drone transaction will be helpful. I’ve held back on requests for same thus far, however, I think reviewing the documents on the drone transaction will now be very helpful” (Dkt. No. 9-3 at p. 75). Cyberlux ignored this request as well. 26. Finally, on December 5, 2023, I once again requested information about drone sales: “We are still concerned about the Drone sales and the necessity to fulfill all the terms of and under the settlement agreement ($5k per Drone) upon the sale. As mentioned we have been dealing with this matter since fall 2021 and are ready to conclude. To that end, I ask again can you please send documentation relevant to the Drone sales” (Dkt. No. 9-3 at p. 80). Cyberlux also ignored this request. 27. The settlement agreement defines requested information as being late if not received within ten (10) calendar days 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. 11, § 21). 28. Defendants' last regular payment was made in May 2024. Since then, Defendants have not made any further payments. This cessation of payments, coupled Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.770 Page 6 of 164

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

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

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

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

Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PagelD.868 Page 104 of 164 Exhibit J

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

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 -8- Case No. 3:24-cv-00482-RBM-VET DECLARATION OF W. WELTER MORTENSON TAGGART ADAMS LLP  September 20, 2023: $600,000 phone transfer authorized by Mark Schmidt  September 26, 2023: $692,689.64 member debit memo  October 16, 2023: $850,000 transfer to Schmidt's Edward Jones account  October 16, 2023: $994,460 transfer to G2G Global LTD  October 23, 2023: $6,000 transfer to Schwab account  November 7, 2023: $25,000 transfer to Schmidt  January 4, 2024: $108,555.42 transfer to Schmidt  January 29, 2024: $25,000 transfer to Schmidt  February 7, 2024: $20,000 transfer to Schmidt  March 6, 2024: $290,000 transfer to Schmidt  April 11, 2024: $50,000 transfer to Schmidt  April 11, 2024: $25,000 transfer to Holly Schmidt  April 11, 2024: $25,000 transfer to Schmidt 37. The total amount of these transfers is $4,417,205.06. These unauthorized transfers are a clear violation of the settlement agreement, which required Defendants to make timely payments to Plaintiffs and provided for accelerated payments upon receipt of substantial funds from drone contracts (Dkt. No. 24-1 at pp. 5-6, §§ 4.a- 4.c). 38. Additionally, on August 12, 2024, Brett Rosen, on behalf of RB Capital Partners, Inc., filed a case against Cyberlux Corporation for breach of contract and declaratory relief in the United States District Court for the Southern District of California. This complaint alleges that Cyberlux has defaulted on several promissory notes amounting to $5,686,960. Attached hereto as Exhibit L is a true and correct copy of the complaint filed by RB Capital Partners, Inc. /// /// /// Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.773 Page 9 of 164

Endorsement of the defendant and garnishee are waived pursuant to Rule 1: 13 of the Rules of the Supreme Court of Virginia. I ask for this: ( Robert Keith Caudle, III, (VSB No. 43450) Counsel for Plaintiff/Judgment Creditor Caudle and Caudle, P.C. 1910 Byrd A venue, Suite 118 Richmond, Virginia 23230 P: 804-358-4961 F: 804-353-1036 robcaudle@caudleandcaudle.com ENTER: , 1 9 1 :;v J-,'--' / ~··· Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.815 Page 51 of 164

Dated July 8, 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 Plaintiffs OGLETREE, DEAKINS, NASH, SMOAK & STEW ART, P .C. 901 East Byrd Street, Suite 1300 Riverfront Plaza, West Tower Richmond, VA 23219 Tel.: (804) 663-2336 Fax: (855) 843-1809 5 Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.825 Page 61 of 164

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. I look forward to working with you and thanks, Very sincerely yours, J. Chapman Petersen, Esq JCP Enclosure Copy: Client 3970 Chain Bridge Road, Fairfax, Va. 22030 & 571-459-2512 ID 571-459-2307 C petersenfirm.com

... .. RYAN A. BROWN, PLLC <lib/rt ARLJNGTON LAW GROUP DESIGNATION OF NATURAL PERSONS TO ACCEPT SERVICE OF PROCESS In accordance with Virginia Code §13.1-1015 (2)(b)(ii), Ryan A. Brown, Esq., the sole member of Ryan A. Brown, PLLC dlb/a Arlington Law Group, a Virginia professional limited liability company (the "Corporate Registered Agent"), executes the following written instrument to designate natural persons at the office or the Corporate Registered Agent upon whom any process, notice, or demand directed to the Corporate Registered Agent may be served and in support thereof states: I. I, Ryan /\. Brown. Esq .. am the sole member or the Corporate Registered Agent. 2. The Corpornte Registered Agent maintains an office in the Commonwealth of Virginia located at 1739 Clarendon Blvd .. Arlington, Virginia, 22209. 3. The Corporate Registered Agent provides a n.:gistercd agent service for customers in the Commonwealth or Virginia. 4. The Corporate Registered Agent therefore will from time to time accept service of process, notice, or demand for entities and individuals in the Commonwealth of Virginia. 5. The Corporate Registered Agent has seven (7) staff members who may be potentially on site whose names are: Ryan A. Brown, Esq., Eric M. Lemmer, Esq., James F. Anderson, Esq., Bridget A. Alzheimer, Esq., Anthony N. Hernandez-Villanueva, Anna S. Goldberg and Marissa N. Whitaker. 6. All employees of the Corporate Registered Agent are considered agents of the Corporate Registered Agent for the purposes of performing the duties required of the Corporate Registered Agent as a registered agent in the Commonwealth of Virginia. 7. As such. any service of process, notice, or demand din::cted lo the Corporate Registered Agent may be accepted by: Ryan A. Brown, Esq .. Eric M. Lemmer, Esq., James F. Anderson, Esq., Bridget A. Alzheimer, Esq .. Anthony N. Hernandez-Villanueva, Artna S. Goldberg and Marissa N. Whitaker. 8. In accordance with Virginia Code §13.1-1015 (2)(b)(ii) presentation of this wrillen instrument or a copy thereof to the individual attempting service of process shall constitute surficient proof that any or the above-named individuals may accept service as an agent of the Corporate Re.gistcred Agent. Rynn A. Brown, PLLC dlb/a Arlington Law Group By: Title: Ryan A. Brown, Esq. Member COMMONWEALTH OF VIRGINIA COlJNTY OF ARLINGTON Dale TO-WIT: ANTHONY NICHOLAS I-IERNANDE7.., REG. No. 00273939, NOTARY PUBLIC MY COMMISSION EXPIRES: JUNE 30, 2028 Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.827 Page 63 of 164

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

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

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

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

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

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

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

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

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

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 -8- Case No. 3:24-cv-00482-RBM-VET DECLARATION OF W. WELTER MORTENSON TAGGART ADAMS LLP  September 20, 2023: $600,000 phone transfer authorized by Mark Schmidt  September 26, 2023: $692,689.64 member debit memo  October 16, 2023: $850,000 transfer to Schmidt's Edward Jones account  October 16, 2023: $994,460 transfer to G2G Global LTD  October 23, 2023: $6,000 transfer to Schwab account  November 7, 2023: $25,000 transfer to Schmidt  January 4, 2024: $108,555.42 transfer to Schmidt  January 29, 2024: $25,000 transfer to Schmidt  February 7, 2024: $20,000 transfer to Schmidt  March 6, 2024: $290,000 transfer to Schmidt  April 11, 2024: $50,000 transfer to Schmidt  April 11, 2024: $25,000 transfer to Holly Schmidt  April 11, 2024: $25,000 transfer to Schmidt 37. The total amount of these transfers is $4,417,205.06. These unauthorized transfers are a clear violation of the settlement agreement, which required Defendants to make timely payments to Plaintiffs and provided for accelerated payments upon receipt of substantial funds from drone contracts (Dkt. No. 24-1 at pp. 5-6, §§ 4.a- 4.c). 38. Additionally, on August 12, 2024, Brett Rosen, on behalf of RB Capital Partners, Inc., filed a case against Cyberlux Corporation for breach of contract and declaratory relief in the United States District Court for the Southern District of California. This complaint alleges that Cyberlux has defaulted on several promissory notes amounting to $5,686,960. Attached hereto as Exhibit L is a true and correct copy of the complaint filed by RB Capital Partners, Inc. /// /// /// Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.773 Page 9 of 164

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

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

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

,, ' . . VIRGINIA: IN THE CITY OF RICHMOND CIRCUIT COURT ATLANTIC WA VE HOLDINGS, LLC, Plaintiff/Judgment Creditor, and SECURE COMMUNITY LLC, Plaintiff/Judgment Creditor, V. Case No: CL22-3882-05 -:S-~ CYBERLUX CORPORATION, Defendant/Judgment Debtor, and PNC BANK, Co-Defendant/Garnishee. ORDER THIS DAY came the plaintiffs/judgment creditors, Atlantic Wave Holdings, LLC and Secure Community, LLC, by counsel, and the co-defendant/garnishee, PNC Bank, upon the Writ ofFieri Facias issued on April 19, 2024, the Notice of Judgment Lien served on PNC Bank and Cyberlux Corporation, plaintiffs Suggestion in Garnishment, the Garnishment Summons with a return date of June 18, 2024, and the Garnishee's Answer to said Garnishment Summons that it has withheld $183,798.34 pursuant to the garnishment. WHEREUPON the Court finds that the co-defendant/garnishee withheld the sum of $183,798.34 pursuant to the Writ of Fieri Facias and the garnishment and the judgment creditors are entitled to the funds. It is ORDERED that the plaintiff recover from the garnishee the sum of $183,798.34. The garnishee is directed to forward a check in the amount of $183,798.34 to Caudle and Caudle, P.C., 1910 Byrd Avenue, Suite 118, Richmond, VA 23230 with in the time required by §8.01- 516 .1 of the Code of Virginia ( 1950). In addition, the Clerk directed to forward an attested copy of this order to all parties in this matter. Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.814 Page 50 of 164

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 VIRGINIA: IN THE CIRCUIT COURT OF THE CITY OF RICHMOND CYBERLUX CORPORATION ) and MARK D. SCHMIDT, ) Individually, )Case No.CL24002019-00 Plaintiffs, ) V ) ATLANTIC WAVE HOLDINGS, LLC,) and SECURE COMMUNITY, LCC, ) Defendants. ) STATEMENT OF NONAPPEARANCE Richmond, Virginia August 27, 2024 10:00 a.m. Job No. 549531 Pages 1-8 Reported by: Carol M. Tayloe, RMR, CMRS, CRR Case 3:24-cv-00482-RBM-VET Document 29-1 Filed 09/03/24 PageID.870 Page 106 of 164

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