Algorhythm CFO reshapes equity via option grant
Algorhythm Holdings, Inc. CFO & General Counsel Andre Alex updated his equity compensation through cancellations and a new stock option grant.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
4
Rhea-AI Filing Summary
Algorhythm Holdings, Inc. CFO & General Counsel Andre Alex updated his equity compensation through cancellations and a new stock option grant. A previously granted restricted stock award for 23,818 common shares and a non-qualified stock option for 23,818 shares at $2.78 per share were cancelled and returned to the issuer. In exchange, he received a new non-qualified stock option for 47,636 common shares at an exercise price of $0.76 per share under the 2022 Equity Incentive Plan, with vesting over time. Following these transactions he held no common stock directly and 209,973 stock options in total, reflecting a restructuring of his awards rather than any open-market buying or selling.
Insider Trade Summary
3 transactions reported
Mixed
3 txns
Insider
Andre Alex
Role
CFO & General Counsel
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Disposition | Stock Option (right to buy) | 23,818 | $0.00 | $0.00 |
| Grant/Award | Stock Option (right to buy) | 47,636 | $0.00 | $0.00 |
| Disposition | Common Stock | 23,818 | $0.00 | $0.00 |
Holdings After Transaction:
Stock Option (right to buy) — 467,582 contracts (Direct);
Common Stock — 0 shares (Direct)
Footnotes (5)
- F1. The reported transaction involved the cancellation of the Reporting Person's previously granted restricted stock award for 23,818 shares of the Issuer's common stock.
- F2. The reported transaction involved the cancellation of the Reporting Person's previously granted non-qualified stock option to purchase 23,818 shares of the Issuer's common stock.
- F3. The reported transaction involved the Reporting Person's receipt of a non-qualified stock option to purchase 47,636 shares of the Issuer's common stock. The options were granted pursuant to the Algorhythm Holdings, Inc. 2022 Equity Incentive Plan.
- F4. Twenty-five percent (25%) of the total number of shares subject to the non-qualified stock option shall vest and become exercisable on the first anniversary of the grant date and six and one-quarter percent (6.25%) of the remaining shares shall vest and become exercisable each quarter thereafter.
- F5. A total of 14,636 shares vested in full on the grant date and a total of 3,666.667 shares vest each quarter thereafter.
Key Figures
Restricted stock cancelled: 23,818 shares
Prior option cancelled: 23,818 shares at $2.78/share
New option grant size: 47,636 shares at $0.76/share
+2 more
5 metrics
Restricted stock cancelled
23,818 shares
Previously granted restricted stock award returned to issuer
Prior option cancelled
23,818 shares at $2.78/share
Non-qualified stock option to purchase common stock cancelled
New option grant size
47,636 shares at $0.76/share
Non-qualified stock option granted under 2022 Equity Incentive Plan
Options held after transaction
209,973 options
Total direct stock options following reported grant and cancellations
New option expiration
May 11, 2036
Expiration date of 47,636-share non-qualified stock option
Key Terms
restricted stock award, non-qualified stock option, Equity Incentive Plan, vesting, +1 more
5 terms
restricted stock award financial
"The reported transaction involved the cancellation of the Reporting Person's previously granted restricted stock award"
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
"The reported transaction involved the cancellation of the Reporting Person's previously granted non-qualified stock option"
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.
Equity Incentive Plan financial
"The options were granted pursuant to the Algorhythm Holdings, Inc. 2022 Equity Incentive Plan"
An equity incentive plan is a program that gives employees, executives or directors the right to receive company stock or options to buy stock as part of their pay. Think of it as offering slices of future company profit to motivate people to boost long‑term performance; for investors it matters because it can align employee goals with shareholder value but also increases the number of shares outstanding, which can dilute existing ownership.
vesting financial
"shares shall vest and become exercisable on the first anniversary of the grant date"
Vesting is the process by which you earn full ownership of something, like company stock or a retirement benefit, over time. It’s like earning the right to keep a gift piece by piece the longer you stay with a company, making sure employees stay committed before they receive all the benefits.
grant date financial
"vest and become exercisable on the first anniversary of the grant date"
The grant date is the day a company formally gives an employee or contractor the right to receive stock-based compensation, such as stock options or restricted shares. It matters to investors because it fixes key terms—like the price, the start of the ownership clock, and when the award will affect the company’s financial statements and share count—so it can influence dilution, reported expenses, and potential future selling pressure.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did Algorhythm Holdings (RIME) CFO Andre Alex report in this Form 4?
Andre Alex reported cancelling one restricted stock award and one prior stock option and receiving a larger new non-qualified stock option grant. The transactions restructure his equity compensation without any open-market share purchases or sales.
What new stock option did Algorhythm Holdings grant to CFO Andre Alex?
He received a non-qualified stock option to purchase 47,636 shares of Algorhythm Holdings common stock at an exercise price of $0.76 per share. The option was granted under the company’s 2022 Equity Incentive Plan with specified vesting terms.
What are the vesting terms of Andre Alex’s new Algorhythm Holdings option grant?
One footnote states 25% of the shares vest on the first anniversary of the grant date and 6.25% of the remaining shares vest each quarter. Another footnote notes 14,636 shares vested immediately, with 3,666.667 shares vesting each quarter thereafter.
How many Algorhythm Holdings options does Andre Alex hold after these transactions?
After the reported cancellations and new grant, Andre Alex held 209,973 stock options directly. This total includes the new 47,636-share non-qualified stock option, providing equity-based compensation without changing the public share float.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Accepted by SEC EDGAR
Learn about SEC filing dates