RESEARCH TRIANGLE PARK, N.C. – January 15, 2026 – Cyberlux Corporation (OTC: CYBL), a leading developer of innovative unmanned aircraft systems (UAS), military communications platforms, and mission-critical integrated defense technologies, today provided key updates on legal matters, operational performance, backlog fulfillment, and revenue pipeline activity, supporting the Company’s execution roadmap for 2026 and its path toward sustainable profitability.
Key Operational and Financial Highlights
● Resolved the underlying Virginia garnishment action, which has now been fully paid
● Actively working toward resolution of remaining legal matters in Texas and related Virginia interpleader actions, with positive outcomes expected
● Currently operating at near break-even while prioritizing order fulfillment and execution
● Funded Backlog: $17 million at quarter end, reflecting over $1.6 million in Q4 2025 fulfillment activity and nearly $1 million in new sales since the prior update
● Near-Term New Order Pipeline: Approximately $15 million, primarily tied to awards pending fulfillment of existing backlog
● Qualified Revenue Pipeline: Increased to over $43 million, subject to contract awards and funding
● Expects to resume positive cash flow from operations beginning March 2026, subject to fulfillment timing and working capital requirements
● Submitted proposal for the U.S. Department of War (DOW) Drone Dominance Program – Gauntlet Phase 1
“The resolution of our primary legal constraint marks an important inflection point for Cyberlux,” said Mark D. Schmidt, Chief Executive Officer of Cyberlux Corporation. “With manufacturing operations delivering on backlog, a growing pipeline in front of us, and meaningful participation in large-scale UAS programs such as the DOW’s Drone Dominance initiative, we are focused on translating this momentum into consistent cash flow and long-term shareholder value.”
Operationally, Cyberlux remains focused on fulfilling existing orders while improving execution efficiency and working capital management. The Company’s funded backlog declined modestly to $17 million from $18 million previously reported, driven by more than $1.6 million in Q4 2025 order fulfillment activity, partially offset by nearly $1 million in newly added sales since the last update.
In parallel, Cyberlux continues to expand its commercial opportunity set. The Company maintains a near-term new order pipeline of approximately $15 million and a qualified revenue pipeline exceeding $43 million, which management expects to convert into backlog in the normal course of operations as contract awards and funding are finalized.
Cyberlux also announced participation in the newly launched U.S. Department of War Drone Dominance Program, a roughly $1 billion initiative designed to mass-produce affordable, expendable attack and reconnaissance drones for U.S. military forces. The Company submitted its Gauntlet Phase 1 request for proposal last week. Leveraging prior delivery of more than 2,000 sUAS platforms to the DOW and its ISO 9000-certified defense manufacturing capabilities, Cyberlux believes it is well positioned for meaningful participation in this multi-phase program.
Cyberlux intends to provide additional updates regarding legal resolutions, operational performance, backlog conversion, and pipeline activity as material developments occur. The Company also expects to publish an updated Investor Relations presentation later this month, January 2026.
About Cyberlux Corporation
Cyberlux Corporation (OTC: CYBL) is a leading provider of advanced defense technology solutions, specializing in
tactical unmanned aerial systems (UAS), military communications and mission-critical solutions for global military
markets. The company develops next-generation military capabilities designed to enhance operational effectiveness
for U.S. military, government, and global defense partners.
For more information, visit www.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, asamended. 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.
For media inquiries, please contact:
Email: ir_cybl@Cyberlux.com | Phone: (984) 363-6894