SCHEDULE: Ault Entities Boost Universal Safety Products Stake to 19.1%

Ault Lending, an affiliate of Milton C. Ault III, increased its beneficial ownership in Universal Safety Products, Inc. to 17.0% through a recent stock purchase.

Summary

• Ault Lending, LLC purchased 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 transaction involved Ault Lending issuing a promissory note in an initial principal amount of $1,230,000 to JLA Realty Associates LLC.
• Milton C. Ault III, through various affiliated entities, now beneficially owns an aggregate of 528,657 shares, representing approximately 19.1% of the company's common stock.
• Hyperscale Data, Inc. and Ault Capital Group, Inc. each beneficially own 472,457 shares, representing 17.4% of the class.
• Ault Lending, LLC beneficially owns 462,457 shares, representing 17.0% of the class.
• Mr. Ault's beneficial ownership includes 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.
• Henry C. Nisser beneficially owns 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 total number of shares outstanding used for percentage calculation is 2,312,887 as of November 19, 2025, plus an additional 405,000 shares from the conversion of certain convertible notes by JLA and its affiliates.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive development, indicating continued conviction and increased influence from a significant insider group, although the use of promissory notes for funding warrants attention.

Positives

• Significant increase in beneficial ownership by Milton C. Ault III and affiliated entities, potentially signaling strong insider confidence in the company's future.
• The acquisition of additional shares by Ault Lending, LLC solidifies the Ault group's position as a major stakeholder.

Negatives

• A significant portion of the share purchases by Ault Lending, LLC (300,000 shares for $1,800,000 and 205,000 shares for $1,230,000) was financed through promissory notes, which could indicate a preference for debt financing over equity or cash for these acquisitions.

Risks

• No specific risks were detailed in this Schedule 13D/A filing beyond the general nature of stock ownership and the financing structure of the acquisitions.

Future Outlook

The filing does not contain explicit forward-looking statements or guidance beyond the details of the completed transactions and the beneficial ownership structure.

Management Comments

• Milton C. Ault, III serves as Executive Chairman of Hyperscale Data, Inc. and Ault Capital Group, Inc., CEO of Ault & Company, Inc., and CEO and Chief Investment Officer of ACG Alpha Management LLC.
• Henry C. Nisser is a director of the Issuer.

Industry Context

StockSavvy.ai notes that increased insider ownership, particularly by a group of affiliated entities led by a prominent investor like Milton C. Ault III, can be interpreted by the market as a strong vote of confidence in the company's valuation and future prospects. This accumulation of a significant stake (19.1%) suggests a strategic interest in the company's direction.

Comparison to Industry Standards

• The 19.1% beneficial ownership stake held by Milton C. Ault III and his affiliates is a substantial position, often indicative of an activist investor or a long-term strategic holder, exceeding typical passive institutional or individual insider holdings.
• The use of promissory notes for a significant portion of the share acquisition is a financing strategy that differs from outright cash purchases, which could be compared to similar financing arrangements in other small-cap or growth-oriented companies where traditional debt or equity raises might be less favorable.

Related Party Transactions

• Milton C. Ault III and Henry C. Nisser were awarded stock options to purchase 50,000 and 25,000 shares, respectively, in their capacity as directors of the Issuer.

Stakeholder Impact

• Shareholders: The increased beneficial ownership by the Ault group could lead to greater influence over corporate decisions and potentially signal a more stable long-term ownership base.
• Creditors: The issuance of promissory notes by Ault Lending, LLC to JLA Realty Associates LLC represents a debt obligation that could impact the financial structure of the acquiring entity.

Next Steps

• No explicit future actions or milestones are mentioned in the filing beyond the completion of the described transactions.

Key Dates

Recommendation

The significant increase in beneficial ownership by the Ault group, including Milton C. Ault III, signals strong insider confidence and a strategic interest in Universal Safety Products. However, the substantial use of promissory notes for a significant portion of the acquisition warrants a cautious approach, suggesting a 'hold' until further operational and financial clarity emerges from the company itself, beyond just ownership changes.

Keywords

Universal Safety Products, Ault, Hyperscale Data, Ault Lending, Schedule 13D, beneficial ownership, stock purchase, insider buying, common stock, promissory notes