SCHEDULE: Universal Safety Products: Stakeholder Share Adjustments

Amendment No. 16 to Schedule 13D details adjustments in share ownership and transactions for Universal Safety Products, Inc., primarily involving Ault Lending, LLC.

Summary

• This filing is an amendment (Amendment No. 16) to a previously filed Schedule 13D concerning Universal Safety Products, Inc. common stock.
• It updates information regarding beneficial ownership and transactions by several reporting persons, including Hyperscale Data, Inc., Ault & Company, Inc., Alpha Structured Finance LP, Alpha Structured Finance GP LLC, ACG Alpha Management LLC, Ault Lending, LLC, Ault Capital Group, Inc., Milton C. Ault III, and Henry Carl Nisser.
• Ault Lending, LLC purchased 185,000 shares of common stock on May 15, 2026, for $5.75 per share, totaling $1,063,750, through an amended stock purchase agreement with SJC Lending, LLC.
• This amendment reflects a reduction in the number of shares to be purchased in the second closing from 200,000 to 185,000, with a corresponding adjustment to the promissory note principal from $1,150,000 to $1,063,750.
• Milton C. Ault III beneficially owns approximately 35.8% of the outstanding shares, including directly owned shares, options, and shares held by affiliated entities.
• Henry Carl Nisser beneficially owns options for 25,000 shares.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this filing as neutral, primarily an administrative update to existing shareholding and transaction details, with a slight negative due to the adjustment in the number of shares and note value in the second closing.

Positives

• Ault Lending, LLC successfully completed a second closing for the purchase of 185,000 shares of Universal Safety Products, Inc. common stock on May 15, 2026.
• The transaction was executed under an amended stock purchase agreement, ensuring continued engagement with the company's securities.
• Milton C. Ault III maintains a significant beneficial ownership stake of approximately 35.8%, indicating continued strategic interest.

Negatives

• The number of shares purchased in the second closing was reduced from the originally planned 200,000 to 185,000, and the associated promissory note was reduced from $1,150,000 to $1,063,750.
• This adjustment was due to a re-evaluation of the conversion of a convertible promissory note, indicating a potential discrepancy or complexity in prior agreements.

Risks

• The adjustment in the number of shares and the principal amount of the promissory note in the second closing could indicate potential complexities or unforeseen issues in the underlying convertible note or the company's share structure.
• The reliance on promissory notes for a significant portion of the share acquisition by Ault Lending, LLC introduces credit risk for the seller, SJC Lending, LLC.
• The significant beneficial ownership by a few entities, particularly Milton C. Ault III and his associated entities, could lead to concentrated control and potential governance concerns.

Future Outlook

The primary future outlook relates to the repayment of the Second Closing Promissory Note by Ault Lending, LLC to SJC Lending, LLC, with a maturity date of September 21, 2026. Mandatory weekly payments are scheduled to begin July 24, 2026.

Industry Context

StockSavvy.ai notes that this filing reflects ongoing adjustments in significant shareholder positions within the publicly traded company landscape. The use of promissory notes in stock acquisitions is a common, albeit complex, financing method that can introduce specific risks and obligations for both parties involved.

Related Party Transactions

• Ault Lending, LLC's purchase of shares from SJC Lending, LLC, where the terms were amended, involves related parties through the broader Ault Capital Group and Alpha Management entities, and Milton C. Ault III's significant roles across these entities.

Stakeholder Impact

• Shareholders: The adjustment in the second closing transaction may signal underlying complexities in the company's capital structure or previous agreements, which could indirectly affect shareholder confidence.
• SJC Lending, LLC (Seller): Faces a reduced principal amount on the promissory note and a revised closing schedule, impacting their expected return and timeline.
• Ault Lending, LLC (Purchaser): Successfully amended the agreement to reflect a more accurate share conversion, but is now obligated under a revised promissory note with specific repayment terms.

Next Steps

• Repayment of the Second Closing Promissory Note by Ault Lending, LLC by September 21, 2026.
• Continued monitoring of share ownership and potential further transactions by the reporting persons.

Key Dates

Keywords

Schedule 13D, Amendment, Universal Safety Products, Common Stock, Beneficial Ownership, Ault Lending, Stock Purchase Agreement, Promissory Note, Milton C. Ault III, Henry Carl Nisser, Securities Exchange Act