Algorhythm (RIME) director receives new stock options and RSA grant
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Algorhythm Holdings, Inc. director Thorn Scott received new equity compensation in the form of stock options and restricted stock. On the grant date, he was awarded a non-qualified stock option covering 39,063 shares of common stock at an exercise price of $1.28 per share, expiring on November 20, 2035. These options vest and become exercisable in equal quarterly installments over one year. He also received a restricted stock award for 19,532 shares of common stock, which likewise vests in equal quarterly installments over one year. Both awards were granted under the company’s 2022 Equity Incentive Plan and represent compensation grants, not open-market purchases or sales.
Positive
- None.
Negative
- None.
Insider Trade Summary
2 transactions reported
Mixed
2 txns
Insider
Thorn Scott
Role
Director
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Grant/Award | Stock Option (right to buy) | 39,063 | $0.00 | -- |
| Grant/Award | Common Stock | 19,532 | $0.00 | -- |
Holdings After Transaction:
Stock Option (right to buy) — 39,063 shares (Direct);
Common Stock — 19,532 shares (Direct)
Footnotes (1)
- The reported transaction involved the Reporting Person's receipt of a restricted stock award for 19,532 shares of the Issuer's common stock (the "RSA"). The RSA was granted pursuant to the Algorhythm Holdings, Inc. 2022 Equity Incentive Plan. The RSA represents a contingent right to receive 19,532 shares of the Issuer's common stock. The RSA vests in equal quarterly installments over a period of one year from the date of grant. The reported transaction involved the Reporting Person's receipt of a non-qualified stock option to purchase 39,063 shares of the Issuer's common stock. The option was granted pursuant to the Algorhythm Holdings, Inc. 2022 Equity Incentive Plan. The shares subject to the non-qualified stock option vest and become exercisable in equal quarterly installments over a period of one (1) year from the date of grant.
Key Figures
Restricted stock award: 19,532 shares
Stock option size: 39,063 shares
Option exercise price: $1.28 per share
+2 more
5 metrics
Restricted stock award
19,532 shares
Common stock RSA granted to director Thorn Scott
Stock option size
39,063 shares
Non-qualified stock option underlying common shares
Option exercise price
$1.28 per share
Strike price of non-qualified stock option
Option expiration
November 20, 2035
Expiration date of non-qualified stock option
Vesting schedule
Quarterly over 1 year
Applies to both RSA and option from grant date
Key Terms
restricted stock award, non-qualified stock option, 2022 Equity Incentive Plan, vests in equal quarterly installments, +1 more
5 terms
restricted stock award financial
"receipt of a restricted stock award for 19,532 shares of the Issuer's common stock"
A restricted stock award is company shares given to an employee or executive that cannot be sold or fully owned until certain conditions—like staying with the company for a set time or hitting performance targets—are met. Think of it as a gift that only becomes yours after you fulfill specific obligations; for investors, these awards matter because they can increase the total shares outstanding when they vest, reveal how management is being paid and motivated, and create potential selling pressure when restrictions lift.
non-qualified stock option financial
"receipt of a non-qualified stock option to purchase 39,063 shares of the Issuer's common stock"
A non-qualified stock option (NSO) is a contract that lets an employee or service provider buy company shares at a fixed price for a set period, like a voucher to purchase stock later at today’s price. It matters to investors because exercising NSOs creates ordinary income for the holder and can increase share count, affecting a company’s earnings and ownership mix; think of it as a future sale that can dilute existing shareholders and has immediate tax consequences for the recipient.
2022 Equity Incentive Plan financial
"The RSA was granted pursuant to the Algorhythm Holdings, Inc. 2022 Equity Incentive Plan"
vests in equal quarterly installments financial
"The RSA vests in equal quarterly installments over a period of one year"
exercise price financial
"conversion_or_exercise_price": "1.2800""
The exercise price is the fixed amount at which you can buy or sell an asset, like a stock, when using an options contract. It matters because it helps determine whether exercising the option will be profitable or not, depending on the current market price. Think of it as the set price you agree on today to buy or sell later.
FAQ
What equity awards did Algorhythm (RIME) director Thorn Scott receive?
Director Thorn Scott received a restricted stock award for 19,532 shares of Algorhythm common stock and a non-qualified stock option for 39,063 shares. Both awards were granted as equity compensation under the company’s 2022 Equity Incentive Plan.
What is the exercise price and term of Thorn Scott’s new stock options at Algorhythm (RIME)?
The non-qualified stock option granted to Thorn Scott has an exercise price of $1.28 per share and expires on November 20, 2035. This gives him the right to buy 39,063 Algorhythm common shares at that price until the option’s expiration date.
How do Thorn Scott’s Algorhythm (RIME) restricted stock and options vest?
Both the restricted stock award and the non-qualified stock option granted to Thorn Scott vest in equal quarterly installments over one year from the grant date. This means portions of the awards become earned and, for options, exercisable each quarter.
Are Thorn Scott’s Algorhythm (RIME) Form 4 transactions open-market buys or sells?
The reported Form 4 transactions are grants of equity compensation, not open-market trades. Thorn Scott acquired a restricted stock award and a non-qualified stock option at $0.00 per share grant price, reflecting compensation rather than discretionary buying or selling in the market.