The new attorneys in the receivership case have filed a couple of motions that may get this thing wrapped up sooner than May 11. The filed essentially a Motion for Closure asking the judge to determine the receiver's fees and return the rest to Cyberlux. Then they filed a motion for expedited hearing on that motion. Both motions are extremely logical and make a lot of sense, hopefully the Judge agrees. The concerning parts are just how dire the financial situation is for Cyberlux as laid out in the motion for an expedited hearing. I have cut the following directly from the motion:
"6. It is necessary for the Motion for Closure to be considered on an emergency basis
because Cyberlux is facing significant, ongoing, and wholly unnecessary harm each day the
receivership continues, in at least the following ways:
1 a. Cyberlux will be unable to meet payroll by the end of March. Failure to meet payroll
will directly impact more than 60 families who depend on Cyberlux for their
income and will irreparably harm Cyberlux’s relationship with its workforce.
1See Exhibit A, Declaration of Mark D. Schmidt.
UnofficialCopyOfficeofMarilynBurgessDistrictClerk
2 b. Cyberlux is unable to secure capital through traditional financing methods as a
direct result of the Receiver’s representations (in several forums) that his authority
is that of a general receiver and not one appointed to collect on a specific debt.
Since the receivership has been in place, Cyberlux has only been able to access
“payday loan”-type financing, with interest rates approaching 100% as compared
to the normal commercial rates in the 10%–15% range. For example, Cyberlux was
negotiating a $3 million financing facility with financier, J.J. Astor. Negotiations
for that financing were postponed due to the receivership as Mr. Astor wanted to
confirm whether Cyberlux could continue operations in light of the receivership.
As a result of the receivership, Mr. Astor rescinded the original financing terms and
converted the arrangement into a far less favorable “payday loan” structure,
reducing the available financing from $3 million to a mere $500,000 and
dramatically increasing the cost to Cyberlux.
c. Cyberlux currently has an order backlog of approximately $17 million and a
pending U.S. CECOM order for $8.8 million that Cyberlux is unable to
manufacture and ship because of the restriction on capital caused by the
receivership. If Cyberlux is not able to fulfill these orders, it will inevitably result
in cancellations by the U.S. government, allied foreign customers, and major
defense customers such as General Dynamics and BAE Systems, including time
sensitive U.S. government rated orders that are designated as the highest
manufacturing priority under the Defense Priorities and Allocations System
(DPAS).
d. Cyberlux is a publicly traded company with approximately 11,000 shareholders.
The continued existence of the receivership will further depress shareholder value
and irreparably harm investors, as Cyberlux remains unable to fund and finance
core operations. Since the receiver was appointed on May 22, 2025, CYBL’s share
price has declined by approximately 52%. Potential investors who were interested
in purchasing stock in Cyberlux have since refused to invest while the receivership
is ongoing.
e. Finally, Cyberlux’s reputation has been, and will continue to be, irreparably harmed
by its inability to deliver existing orders and the forced cessation of operations. To
date, Cyberlux has lost a pending $8.8 million order from U.S. CECOM, which is
being withheld until the receivership is cleared and Cyberlux can demonstrate
financial stability to the U.S. government. The continued existence of the
receivership is obstructing the fulfillment of approximately $26 million in orders in
total that would generate more than $15 million in cash flow for Cyberlux."
That says what we have all know, at least the ones that have been here for some time, the company has been extremely hindered by the receivership and has lost money and opportunity to get contracts because of it. It also says that they will not be able to make payroll by the end of March. This is a far cry from the last release where they stated that they hoped to be cash flow positive in March. Hopefully the Judge grants both motions, I really don't know why he wouldn't.
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