Cyberlux Corporation (OTC: CYBL) Releases Third Quarter 2023 Financial and Operational Results; Announces Transformative Actions to Refocus the Company on the Defense Technology Sector

Rhea-AI Summary

Cyberlux Corporation (CYBL) reports record cash flow and balance sheet growth, UAS results, Datron acquisition, and non-U.S. subsidiaries disposition to focus on Defense Technology and US Department of Defense contracts.

Positive

• Record Cash Flow quarter and poised for a record level of Revenue for the year
• Balance Sheet Assets grew from $12.3 million to $46.9 million in 9 months, an increase of almost 4X
• Awarded a $78.9 million DoD contract for Cyberlux K8 Unmanned Aircraft Systems with advance payments of $38,700,600
• Acquired Datron World Communications, Inc. for approximately $10.5 million
• Focused solely on Defense Technology with four defense technology business units
• Driving operational growth with current and future technologies

Negative

• None.

The Company reports significant UAS results, the acquisition of Datron World Communications, and the disposition of the non-U.S. subsidiaries to make way for all levels of US Department of Defense contracts.

RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)-- Cyberlux Corporation (OTC: CYBL), a leading provider of innovative defense technology systems, announced that the Company achieved a record Cash Flow quarter for the period ended September 30, 2023, and the Company is poised to achieve a record level of Revenue for the year. The Company also grew its Balance Sheet Assets over the last nine months from $12.3 million for the period ended December 31, 2022, to $46.9 million for the period ended September 30, 2023, an increase of almost 4X.

Cyberlux Corporation CEO Mark Schmidt commented on the results: “Dear Cyberlux Community, our Q3 2023 Report, which includes our financial results as advised and reviewed by the accounting experts at EisnerAmper, includes the following transformative actions: our breakthrough UAS results, our Datron acquisition, and the refocusing of the Company on Defense Technology and the related disposition of the non-U.S. subsidiaries to make way for DoD contracts that require Top-Secret clearances. Our operating period ended September 30, 2023, has set the stage for the Company to capitalize on remarkable opportunities across the global Defense Technology markets.

We are publishing our results in this press release (see the link to the Q3 Report below) as we are currently unable to distribute through the OTC Markets platform. Our work to remove the CE designation continues, but the Company is driving breakthrough results regardless of these temporary obstacles. Cyberlux is taking the steps required to become a fully reporting SEC compliant public company as soon as possible.”

https://cyberlux.com/public-released-documents/Cyberlux-Corporation-Q3-2023-Quarterly-Disclosure-Statement-11.20.2023-FINAL.pdf

During the nine months ended September 30, 2023, the Company has refocused its operations through the following transactions:

1.		On August 29, 2023, Cyberlux Corporation was awarded a contract of $78.9 million to deliver Cyberlux K8 Unmanned Aircraft Systems, as confirmed by the United States Department of Defense (“DoD”) in the February 24, 2023, USAI announcement (https://www.defense.gov/News/Releases/Release/Article/3308633/biden-administration-announces-additional-security-assistance-for-ukraine/). As of September 30, 2023, the Company has received advance payments for the purchase of such systems from the DoD of $38,700,600. The completion of shipment of the systems is expected to occur by March 2024.
2.		On September 16, 2023, the Company acquired 100% of the outstanding stock of Datron World Communications, Inc. (“Datron”), a provider of communications solutions to government, militaries, and industrial users globally. The purchase price consisted of the payment of $3.0 million at closing, issuance of a $2.0 million note payable (1st note), the issuance of a $2.0 million note payable (2nd note) and the cancellation of a $3.5 million advance made to Datron World Communications, Inc. by Datron Holdings, Inc.
		The Datron acquisition was accounted for as an acquisition of a business, and the purchase price of approximately $10.5 million was allocated to net current assets of $1.3 million and the remaining $9.2 million was allocated to technology based intangible assets, which are to be amortized over 5 years. The Company also recognized a deferred tax liability (included in other long-term liabilities on the accompanying balance sheet) of approximately $2.2 million representing the basis difference in the intangible assets.
3.		Cyberlux and Kreatx Shpk, FBD Shpk and Havas SAS entered into Agreements of Business Separation, effective as of June 30, 2023, terminating the business relationship between the parties, in exchange for certain payment and equity terms. The operations of these businesses for the periods ended June 30, 2023, are presented as discontinued operations in the consolidated statement of operations. The Company recognized a loss of $11,027,358 in the disposition of these subsidiaries, as presented in the consolidated statement of operations.

During 2021 and 2022, Cyberlux introduced products and solutions across multiple industries, extending the mission of the Company well beyond the hardened multispectral illuminators Cyberlux had become known for. In the course of 2023, Cyberlux has refocused solely on Defense Technology with four defense technology business units, including:

Unmanned Aircraft Solutions (UAS): Military-Grade Hardware and Software Guidance System Platform with Enhanced Infrared Night Vision; Thermal Sensor technology; Eye-in-the-Sky Monitoring; LiDAR Mapping and Perception; UAS Guidance System Software; UAS Service Support Software; and Telecommunications, Data Analytics Application Solutions with ongoing technology and Strategic IP development.

Military Communications Technology (MCT): Datron Military-Grade mission-critical voice, data, and video connectivity. Datron partners with governments, militaries, public safety organizations, security forces and commercial users worldwide to innovate and rapidly deploy high frequency (HF), very high frequency (VHF), multiband (MB) voice/data solutions. Datron World Communications has customers in over 80 countries who benefit from communications systems that reliably perform in demanding environments. Datron’s military communication technology expands from short range (VHF/MB) to long range communications (HF).

Short Range Communications: Datron’s VHF/MB short-range radios (7-50 km) provide secure voice and data exchanges to troops worldwide for communicating on the battlefield. These radios offer highly encrypted voice and data communications which allow the users to communicate without interception by nonfriends foes.

Long Range Communications: Datron’s long-range HF radios (50-100 km) offer secure communications in a ruggedized form-factor, providing a sophisticated feature-set, and utilizing a simplified user interface for ease of operation. Datron’s HF radios are JITC certified, software defined radio (SDR) offering advanced capabilities to the end user.

Special Activities Solutions (SAS): Global Training and Security capability for UAS and other Special Operations training, soldier support systems, including advanced infrared and white LED lighting systems.

Advanced Defense Solutions (ADS): Advanced Intelligence, Surveillance and Reconnaissance (ISR) solutions, advanced UAS solutions, advanced cyber technology solutions addressing U.S. agencies, with ongoing Strategic IP development with legacy and future Strategic Partner technologies.

For Unmanned Aircraft Solutions, Military Communications Solutions, Special Activities Solutions and Advanced Defense Solutions, we sell as direct commercial sales, foreign military sales, and foreign military financing to global government customers. We fulfill ongoing contract requirements for various Non-U.S. Government and U.S. Government agencies including the U.S. Air Force, Air/Army National Guard, U.S. Special Operations Command (USSOCOM), U.S. Army and the Defense Logistics Agency. For some of our products, we sell and service directly to customers and through related distributors.”

Going forward, Cyberlux Corporation is “Harnessing the Future,” driving operational growth with current and future technologies, through fundamental organic growth and through an accelerated acquisitions and joint ventures strategy, all fueling significant future growth. As the Company develops advanced technology products, we will identify core technology and product companies, and these companies will become the Cyberlux growth catalysts. As the results show, Cyberlux is building a global enterprise and developing into a leading technology growth company.

About Cyberlux Corporation

Cyberlux Corporation (OTC Bulletin Board: CYBL) is “Harnessing the Future” by leading defense technology solution development across global industries, driving operational growth through an accelerated acquisitions and joint ventures strategy, and continuously fueling growth with current and future technology developments, including fundamental organic growth from the Company’s four business units – Unmanned Aircraft Solutions, Military Communications Technology, Special Activity Solutions, and Advanced Defense Solutions, targeting U.S. government agencies, commercial markets and international opportunities. For more information, please visit www.cyberlux.com. For investor information, please contact: ir_cybl@cyberlux.com

SAFE HARBOR STATEMENT

This Press Release may contain forward-looking statements that can be identified by terminology such as “believes,” “expects,” “potential,” “plans,” “suggests,” “may,” “should,” “could,” “intends,” or similar expressions within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the company's OTC/SEC filings. These risks and uncertainties could cause the company's actual results to differ materially from those indicated in the forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231120593127/en/

ir_cybl@Cyberlux.com | T: (984) 363-6894

Source: Cyberlux Corporation

FAQ

What are the significant results reported by Cyberlux Corporation (CYBL)?

Cyberlux Corporation reports a record Cash Flow quarter and is poised for a record level of Revenue for the year.

What is the recent growth in Cyberlux Corporation's balance sheet assets?

The company's Balance Sheet Assets grew from $12.3 million to $46.9 million in 9 months, an increase of almost 4X.

What contracts did Cyberlux Corporation secure with the US Department of Defense (DoD)?

Cyberlux Corporation secured a $78.9 million DoD contract for Cyberlux K8 Unmanned Aircraft Systems with advance payments of $38,700,600.

What acquisition did Cyberlux Corporation make recently?

Cyberlux Corporation acquired 100% of the outstanding stock of Datron World Communications, Inc. for approximately $10.5 million.

What is Cyberlux Corporation's current focus?

The company is focused solely on Defense Technology with four defense technology business units.

How is Cyberlux Corporation driving operational growth?

The company is driving operational growth with current and future technologies.