SCHEDULE: Ault Entities Boost Universal Safety Products Stake

Ault & Company and affiliated entities, including Milton C. Ault III, increased their beneficial ownership in Universal Safety Products, Inc. to 5.4% through open market purchases and vested stock options.

Summary

• Ault & Company, Inc. and its affiliates, along with Milton C. Ault III and Henry C. Nisser, have increased their aggregate beneficial ownership in Universal Safety Products, Inc.
• Milton C. Ault III, in his individual capacity and through affiliated entities, now beneficially owns 125,407 shares, representing approximately 5.4% of the Issuer's Common Stock.
• Henry C. Nisser beneficially owns 25,000 shares, representing approximately 1.1% of the Issuer's Common Stock.
• Ault & Company, Inc. directly and indirectly beneficially owns 75,407 shares, or approximately 3.3% of the outstanding shares.
• Ault Lending, LLC made multiple open market purchases of Common Stock between September 10, 2025, and October 3, 2025, totaling 49,014 shares for an aggregate cost of $281,526.78.
• Ault & Company, Inc. purchased 1,000 shares on September 30, 2025, at $4.2850 per share.
• Mr. Ault was awarded 50,000 stock options with a strike price of $3.40 per share, which vested on October 20, 2025, and expire on August 26, 2035.
• Mr. Nisser was awarded 25,000 stock options with a strike price of $3.40 per share, which vested on October 20, 2025, and expire on August 26, 2035.
• The beneficial ownership percentages are based on 2,312,887 shares outstanding as of September 17, 2025, as reported in the Issuer's Form 8-K filed on October 20, 2025.

Sentiment

Score: 7

Explanation: The increased beneficial ownership by key insiders and affiliated entities, including significant open market purchases and vested stock options, generally signals confidence in the company's value and future prospects, contributing to a positive sentiment.

Positives

• Significant insider buying by Ault Lending, LLC, totaling 49,014 shares, indicates confidence in the company's future prospects.
• Milton C. Ault III, a key executive and director, increased his beneficial ownership to 5.4%, signaling strong alignment with shareholder interests.
• Stock options awarded to directors Mr. Ault (50,000 shares) and Mr. Nisser (25,000 shares) have vested, providing them with a direct financial incentive tied to the company's performance.

Risks

• The purchases were made using working capital, which 'may, at any given time, include margin loans made by brokerage firms in the ordinary course of business,' introducing leverage risk to the reporting persons' investment strategy.

Future Outlook

The filing does not contain explicit forward-looking statements or guidance regarding the company's future performance or strategic direction. It primarily details changes in beneficial ownership and related transactions.

Management Comments

• Milton C. Ault, III, Chief Executive Officer of Ault & Company, Inc., signed the filing, certifying the information to be true, complete, and correct to the best of his knowledge and belief.

Industry Context

This filing is a standard disclosure of beneficial ownership changes by significant shareholders and insiders. It does not provide broader industry context or relate the company's performance to industry trends. The increased stake by Ault entities could be interpreted as a vote of confidence in Universal Safety Products, Inc. within its specific market segment.

Related Party Transactions

• Ault & Company, Inc., Alpha Structured Finance LP, Alpha Structured Finance GP LLC, ACG Alpha Management LLC, Ault Lending, LLC, Ault Capital Group, Inc., and Hyperscale Data, Inc. are all affiliated entities, with Milton C. Ault III holding various executive and chairman roles across them, and have engaged in open market purchases of Universal Safety Products, Inc. Common Stock.
• Milton C. Ault III, as a director of the Issuer, was awarded 50,000 stock options.
• Henry C. Nisser, as a director of the Issuer, was awarded 25,000 stock options.

Stakeholder Impact

• Shareholders may view the increased insider ownership as a positive signal, indicating management and significant investors believe the stock is undervalued or has strong growth potential.
• The vesting of stock options for directors aligns their financial interests more closely with long-term shareholder value.

Key Dates

Recommendation

The increased beneficial ownership by insiders and affiliated entities, particularly Milton C. Ault III, suggests a strong vote of confidence in Universal Safety Products, Inc. This insider buying activity is generally a positive indicator. However, a Schedule 13D filing primarily focuses on ownership disclosure and does not provide comprehensive financial or operational details to warrant a 'buy' or 'strong buy' recommendation without further analysis of the company's fundamentals, market position, and broader financial health. Therefore, a 'hold' recommendation is appropriate, acknowledging the positive insider sentiment while awaiting more complete financial context.

Keywords

Universal Safety Products, Ault & Company, Schedule 13D, beneficial ownership, insider buying, stock options, corporate governance, investment, equity stake