Litigation Releases (Rapid Therapeutic Science Laboratories, Inc. and Donal R. Schmidt, Jr.)

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26437 / December 12, 2025

Securities and Exchange Commission v. Rapid Therapeutic Science Laboratories, Inc. and Donal R. Schmidt, Jr., No. 3:23-cv-2081-S (N.D. Tex. filed Sept. 18, 2023)

SEC Obtains Final Judgments as to CBD-Inhaler Company and its CEO Charged with Making Fraudulent Statements

On November 24, 2025, the U.S. District Court for the Northern District of Texas entered final judgments as to Dallas-based Rapid Therapeutic Science Laboratories, Inc. ("RTSL") and its chief executive officer, Donal R. Schmidt, Jr. (collectively, "Defendants"), for charges related to a series of false and misleading public statements made by Defendants regarding RTSL's business in connection with their offers and sales of RTSL stock.

As alleged in the SEC's complaint, filed on September 18, 2023, Defendants falsely claimed that RTSL, which manufactures and sells inhaler devices containing cannabidiol, had obtained an industrywide certification relating to manufacturing and product safety; RTSL had secured major sales contracts; RTSL had a laboratory that met international standards; RTSL's chief science officer was an engineer who held bachelor's and doctoral degrees; RTSL's inhalers were safe and legal; and RTSL's stock listing application had been approved by Nasdaq.

Without admitting or denying the SEC's allegations against it, RTSL consented to the entry of a final judgment, permanently enjoining it from violating Sections 10(b) and 13(a) of the Securities Exchange Act of 1934; Exchange Act Rules 10b-5, 12b-20, 13a-1, and 13a-13; and Sections 5 and 17(a) of the Securities Act of 1933. The final judgment orders RTSL to pay disgorgement of $686,090, plus prejudgment interest of $183,528.

Without admitting or denying the SEC's allegations against him, Schmidt consented to the entry of a final judgment, permanently enjoining him from violating Section 10(b) of the Exchange Act; Exchange Act Rules 10b-5 and 13a-14; and Sections 5 and 17(a) of the Securities Act. The final judgment also permanently enjoins Schmidt from aiding and abetting any violation of Section 13(a) of the Exchange Act; and Exchange Act Rules 12b-20, 13a-1, and 13a-13. The final judgment orders Schmidt to pay disgorgement of $144,285, plus prejudgment interest of $38,596, and a civil penalty of $236,451. Additionally, the final judgment imposes a five-year conduct-based injunction and bars Schmidt from serving as an officer or director of a public company and from participating in any penny stock offering for five years.

The SEC's litigation was led by Jason Rose of the SEC's Fort Worth Regional Office, under the supervision of Keefe Bernstein.