There’s something deeply impressive about watching a company make terrible decisions with absolute confidence. And then write them down. In a public filing.
Cyberlux Corporation, a self-styled defense contractor allegedly building drones for U.S. military use, has quietly disclosed—on page 45 of its annual report, naturally—that it agreed to pay $2.5 million to settle debts with entities including Rosewood Theater LLC, a name that sounds less like a military subcontractor and more like somewhere you’d go for bottle service and a lap dance on a Thursday night.

Let me be clear: I have no issue with strip clubs. They serve their purpose, and unlike most OTC-listed companies, they’re at least honest about what they’re selling. But when a company that’s trying to attach itself to highly reputable companies and individuals is also issuing shares and cash to pay off convertible note deals involving adult entertainment figures? That’s not just a red flag—it’s the whole circus tent.
And no, this isn’t what landed them back in Texas court. That would be the same federal judge who twice, in as many months, told Cyberlux to pay their creditors and stop wasting the court’s time. After multiple failed removals and mounting evidence of asset shuffling, the state court now appears done playing nice. The third push for receivership is underway, and it looks far more likely to stick.
So the strip club settlement? That’s just the ironic subplot: while stiffing vendors, ducking court, and dodging rent, Cyberlux still found time and resources to strike a multi-million dollar deal with nightlife-linked financiers. A deal which, given their history, they almost certainly won’t honor.
This is the same company currently:
- Locked out of its own warehouse,
- Being chased in multiple jurisdictions for unpaid debts,
- Failing to appear in court (again).
You know you’ve lost the plot when you’re neglecting operational basics but still finding seven figures for a group linked to nightlife finance.
Let’s not pretend this is a one-off. Cyberlux also owes staffing firms like Aerotek. They haven’t paid Thin Air Gear for drone parts. They’ve defaulted on a line of credit. They’ve diluted shareholders into oblivion. And yet every few weeks, another glossy PR line appears: drones, contracts, partnerships. This week it’s TrellisWare, a legitimate defense communications company that’s now—whether they like it or not—appearing in the same breath as convertible note payoffs to parties with links to strip clubs.
The absurdity is almost poetic. Tactical radios on one side. Velvet ropes on the other.
And here’s the part that should really land: these aren’t strategic investments. These are overdue IOUs. Long-standing obligations that Cyberlux failed to pay until it absolutely had to—and even then, under cover of regulatory obscurity. A quarter billion shares go out the door. And nobody says a word.
If you’re a retail investor still asking, “Why is the stock going down?” this might be your answer. Because when a defense contractor starts acting like a lifestyle brand for bad debt, it’s not undervalued. It’s over-believed.
Cyberlux isn’t serious. It’s just wearing serious words.
And no amount of buzzwords or battlefield branding will change that.
Disclaimer
All posts, articles, and op-eds about Cyberlux Corporation are grounded entirely in information sourced from publicly available court records, government documents, and financial disclosures filed with OTC Markets. This content is intended for informational purposes only—it’s not legal advice, it’s not financial guidance, and it’s definitely not an invitation to dive headfirst into investment decisions. Our interpretations, opinions, and conclusions stem exclusively from these accessible resources. Ultimate adjudication of legal matters rests with the courts and qualified legal professionals. As always, you’re encouraged to verify independently because, let’s face it, trust but verify is a motto that never goes out of style. If you believe there is an error in our reporting and have verifiable proof, we encourage you to present it, and we will promptly review and address any inaccuracies.