SCHEDULE: Alzamend Neuro: Ault Entities Maintain Significant Stake

Milton C. Ault, III and affiliated entities collectively hold a 13.3% beneficial ownership in Alzamend Neuro, Inc., with Ault Lending, LLC converting preferred stock and selling common shares.

Summary

• Milton C. Ault, III and associated entities (Hyperscale Data, Ault Lending, Ault Life Sciences, Ault Life Sciences Fund) collectively beneficially own 509,315 shares of Alzamend Neuro, Inc. common stock, representing approximately 13.3% of the outstanding shares as of September 25, 2025.
• Ault Lending, LLC converted 1,260.75528 shares of Series B Convertible Preferred Stock into common stock between July 23, 2025, and September 25, 2025, at a price of $1,000.00 per preferred share.
• Ault Lending, LLC sold a total of 440,635 shares of common stock between July 23, 2025, and September 25, 2025, with prices ranging from $2.2155 to $2.9502 per share, generating approximately $1,094,085.93 in proceeds.
• Other reporting individuals (William B. Horne, Henry C.W. Nisser, Kenneth S. Cragun, David J. Katzoff) hold smaller beneficial ownership percentages, primarily through direct shares and stock options awarded in their capacities as officers and/or directors.

Sentiment

Score: 3

Explanation: The significant insider selling by Ault Lending, LLC, a major beneficial owner, coupled with the declining stock prices during the selling period, indicates a negative sentiment. While Ault and related entities still hold a substantial stake, the divestment activity is a concern.

Positives

• Milton C. Ault, III and affiliated entities maintain a significant beneficial ownership stake of 13.3%, indicating continued interest in the company.
• The conversion of Series B Convertible Preferred Stock into common stock by Ault Lending, LLC suggests a strategic move to increase common share holdings from preferred positions.

Negatives

• Ault Lending, LLC engaged in substantial sales of common stock, divesting 440,635 shares over the past 60 days, which could signal a reduction in exposure or a need for liquidity.
• The common stock sales occurred at prices ranging from $2.9502 down to $2.2155, indicating a declining price trend during the selling period.

Risks

• Significant insider selling by Ault Lending, LLC could be perceived negatively by the market, potentially signaling a lack of confidence or a strategic shift by a major beneficial owner.
• The conversions of preferred stock into common stock, followed by sales, could increase the float and put downward pressure on the stock price if the market cannot absorb the additional shares.

Future Outlook

NA

Industry Context

This filing primarily details changes in beneficial ownership and insider transactions, which are specific to Alzamend Neuro, Inc. and its major shareholders. It does not provide broader industry trends or context for the biotechnology or pharmaceutical sectors.

Related Party Transactions

• Milton C. Ault, III is deemed to beneficially own shares held by Hyperscale Data, Ault Life Sciences, Ault Life Sciences Fund, and Ault Lending due to his relationships with these entities.
• Hyperscale Data, Inc. is deemed to beneficially own shares held by Ault Lending, LLC due to its relationship with the entity.
• Ault Lending, LLC converted Series B Convertible Preferred Stock and sold common stock, all of which are related party transactions given the beneficial ownership structure.

Stakeholder Impact

• Shareholders: The significant insider selling by Ault Lending, LLC could lead to concerns about the company's future prospects and potentially exert downward pressure on the stock price.
• Creditors: The conversion of preferred stock and subsequent sales could impact the company's capital structure, though the direct impact on creditors is not explicitly detailed.

Key Dates

Recommendation

The substantial insider selling by Ault Lending, LLC, a major beneficial owner, totaling over $1 million in proceeds from 440,635 shares, is a strong negative signal. This divestment, occurring at declining prices, suggests a lack of confidence from a key stakeholder. While Milton C. Ault, III and related entities still hold a significant stake, the recent selling activity outweighs the positive of maintaining a large overall position, indicating a potential for further downward pressure or a strategic shift away from the company by these insiders.

Keywords

Alzamend Neuro, AZN, Schedule 13D, Beneficial Ownership, Insider Trading, Stock Sales, Preferred Stock Conversion, Milton C. Ault III, Ault Lending, Hyperscale Data, Biotechnology, Pharmaceuticals