You are wrong. It has been posted and supposedly verified that Cyberlux has a $3.4M contract with the National Guard. If they are capable of actually fulfilling the contract is another story and we will know soon enough.
The article in question has absolutely nothing to do with CYBL.
Actually the Mattel toy company never made an M-16 that is all just urban legend.
They never had a license to manufacture firearms nor did they ever produce the plastic stocks or hand guards.
The rumor got started by GI's joking around about the plastic furniture on the gun calling it a toy and second Mattel made a toy version of the rifle for kids.