SCHEDULE: Ault Group Boosts Universal Safety Products Stake to 21.1%

An amendment to Schedule 13D reveals increased beneficial ownership in Universal Safety Products, Inc. by Milton C. Ault III and affiliated entities, reaching 21.1%.

Summary

• This Amendment No. 10 updates the Schedule 13D filing for Universal Safety Products, Inc. Common Stock, detailing changes in beneficial ownership by Milton C. Ault III and associated entities.
• Milton C. Ault III's aggregate beneficial ownership has increased to 585,330 shares, representing approximately 21.1% of the Issuer's outstanding common stock.
• This includes 700 shares directly owned by Mr. Ault, 50,000 shares from exercisable stock options, and 534,630 shares beneficially owned through affiliated entities.
• Hyperscale Data, Inc. and Ault Capital Group, Inc. each beneficially own 528,630 shares, equating to 19.5% of the class.
• Ault Lending, LLC beneficially owns 518,630 shares (19.1%), which includes 300,000 shares purchased from JLA Realty Associates LLC for $1,800,000, financed by promissory notes.
• Henry Carl Nisser beneficially owns 25,000 shares from exercisable stock options, representing 0.9% of the class.
• The beneficial ownership percentages are calculated based on 2,717,787 shares outstanding as of February 24, 2026.
• Recent open market purchases by Ault Lending, LLC occurred between February 20, 2026, and March 3, 2026, totaling 56,179 shares at prices ranging from $4.6590 to $5.0041.
• Milton C. Ault III also made direct open market purchases of 500 shares on March 3, 2026, at prices between $4.60 and $4.92.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive development, as increased insider ownership by a significant investor group often signals strong conviction in the company's value and future performance.

Positives

• Increased beneficial ownership by Milton C. Ault III and affiliated entities, signaling strong insider confidence in Universal Safety Products, Inc.
• Milton C. Ault III's aggregate beneficial ownership has risen to approximately 21.1%, indicating a significant and growing stake.
• Stock options awarded to directors Mr. Ault (50,000 shares) and Mr. Nisser (25,000 shares) are fully vested, providing them with direct equity interest at a strike price of $3.40 per share.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that increased insider ownership, particularly by a prominent investor like Milton C. Ault III, can often be interpreted by the market as a sign of confidence in the company's future prospects, potentially differentiating it from peers facing similar market conditions.

Related Party Transactions

• Ault Lending, LLC, an entity affiliated with the reporting persons, purchased 300,000 shares from JLA Realty Associates LLC for $1,800,000, issuing promissory notes as consideration.
• Milton C. Ault III and Henry Carl Nisser, both directors of Universal Safety Products, Inc., were awarded stock options to purchase 50,000 and 25,000 shares, respectively.

Stakeholder Impact

• Shareholders: Increased insider ownership by a significant investor group could be perceived as a positive signal, potentially boosting investor confidence and suggesting a belief in the company's long-term value.
• Management: The substantial ownership stake held by Mr. Ault and his affiliated entities, coupled with Mr. Ault's role as a director, grants them significant influence over the company's strategic direction and corporate governance.

Key Dates

Recommendation

The significant increase in beneficial ownership by Milton C. Ault III and his affiliated entities, now exceeding 20%, suggests strong insider confidence and potential for future strategic involvement. However, without further details on the company's operational performance or specific strategic plans from the activist group, a 'hold' recommendation is prudent. Investors should monitor for subsequent filings or announcements that might clarify the group's intentions or the company's performance trajectory.

Keywords

Universal Safety Products, Schedule 13D, beneficial ownership, Milton C. Ault III, Ault & Company, Hyperscale Data, Ault Lending, insider ownership, stock options, equity stake, SEC filing