SCHEDULE: Ault Affiliates Boost Universal Safety Products Stake

Ault Lending, an affiliate of Milton C. Ault III, increased its beneficial ownership in Universal Safety Products, Inc. by acquiring an additional 205,000 shares.

Summary

• Ault Lending, LLC acquired an additional 205,000 shares of Universal Safety Products, Inc. common stock from JLA Realty Associates LLC on February 4, 2026, at $6.00 per share.
• This purchase was financed by issuing a promissory note with an initial principal amount of $1,230,000 to JLA.
• Milton C. Ault III's beneficial ownership, including direct holdings, options, and shares held by affiliated entities, now stands at 528,657 shares, representing approximately 19.1% of the class.
• Hyperscale Data, Inc. and Ault Capital Group, Inc. beneficially own 472,457 shares, or 17.4% of the class.
• Ault Lending, LLC's beneficial ownership is 462,457 shares, or 17.0% of the class.
• Henry Carl Nisser beneficially owns 25,000 shares through options, representing 0.9% of the class.
• The total shares outstanding used for percentage calculation include 2,312,887 reported as of November 19, 2025, and an additional 405,000 shares from the conversion of JLA convertible notes.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive development, as increased insider and affiliate ownership, especially by a prominent investor like Milton C. Ault III, often signals strong conviction in the company's future value, despite the use of debt financing for the acquisition.

Positives

• Increased beneficial ownership by key affiliates and management, including Milton C. Ault III, potentially signaling confidence in the company's future.
• The exercise price of director stock options ($3.40) is below the recent purchase price ($6.00), suggesting potential value for option holders.

Negatives

• The acquisition of shares by Ault Lending was financed through promissory notes, indicating an increase in debt for the acquiring entity.

Risks

• Reliance on debt financing (promissory notes) for share acquisitions by affiliated entities.
• Potential for conflicts of interest given the significant beneficial ownership and multiple roles held by Milton C. Ault III across various reporting entities and the Issuer.

Future Outlook

The filing does not contain specific forward-looking statements or guidance regarding the company's operational or financial performance, focusing instead on changes in beneficial ownership.

Industry Context

StockSavvy.ai notes that increased insider ownership, particularly by a significant shareholder group and key executives, can often be interpreted by the market as a vote of confidence in the company's long-term prospects. This move by the Ault affiliates suggests a strategic accumulation of shares in Universal Safety Products, Inc.

Related Party Transactions

• Ault Lending, an affiliate of Milton C. Ault III, purchased shares from JLA Realty Associates LLC, which is also noted to have converted certain convertible notes, suggesting a relationship between JLA and the reporting persons or the Issuer.
• The purchase was financed by promissory notes issued by Ault Lending to JLA.

Stakeholder Impact

• Shareholders: Increased concentration of ownership by a significant investor group could lead to more aligned long-term strategic decisions but also potentially less liquidity for minority shareholders.
• Creditors: The issuance of promissory notes by Ault Lending increases its debt obligations.

Key Dates

Recommendation

The increased beneficial ownership by Milton C. Ault III and his affiliated entities signals confidence in Universal Safety Products, Inc. However, the use of debt financing for these acquisitions and the lack of specific operational or financial updates in this filing suggest a 'hold' recommendation. Investors should monitor future filings for performance metrics and strategic initiatives to assess the long-term impact of this increased insider stake.

Keywords

Universal Safety Products, Schedule 13D, Beneficial Ownership, Ault Lending, Milton C. Ault III, Stock Acquisition, Promissory Notes, Insider Ownership, SEC Filing, Corporate Governance