Algorhythm Holdings (RIME) director granted RSAs and options in new equity awards
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Algorhythm Holdings, Inc. director Bernardo Melo reported receiving new equity awards as part of his compensation. He was granted a restricted stock award covering 19,532 shares of common stock under the company’s 2022 Equity Incentive Plan, which vests in equal quarterly installments over one year from the grant date.
He was also granted a non-qualified stock option to purchase 39,063 shares of common stock at an exercise price of $1.28 per share, expiring in 2035. These options vest and become exercisable in equal quarterly installments over one year, and there were no open-market purchases or sales reported.
Positive
- None.
Negative
- None.
Insider Trade Summary
2 transactions reported
Mixed
2 txns
Insider
MELO BERNARDO
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 options granted: 39,063 shares
Option exercise price: $1.28 per share
+5 more
8 metrics
Restricted stock award
19,532 shares
Contingent right to common stock under 2022 Equity Incentive Plan
Stock options granted
39,063 shares
Non-qualified stock option grant under 2022 Equity Incentive Plan
Option exercise price
$1.28 per share
Exercise price for 39,063-share non-qualified stock option
Option expiration
November 20, 2035
Expiration date of non-qualified stock option grant
RSA vesting period
1 year
Restricted stock vests in equal quarterly installments over one year
Option vesting period
1 year
Stock options vest and become exercisable quarterly over one year
Common stock after RSA
19,532 shares
Total common shares directly owned following restricted stock award
Options after grant
39,063 options
Total option shares directly owned following grant
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
"The reported transaction involved the Reporting Person's receipt of a restricted stock award for 19,532 shares"
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 Reporting Person's receipt of a non-qualified stock option to purchase 39,063 shares"
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"
contingent right to receive financial
"The RSA represents a contingent right to receive 19,532 shares of the Issuer's common stock"
FAQ
What insider transactions did RIME director Bernardo Melo report on this Form 4?
Director Bernardo Melo reported receiving a restricted stock award and a stock option grant. The filing shows 19,532 shares of restricted stock and options for 39,063 shares, both granted under Algorhythm Holdings’ 2022 Equity Incentive Plan as part of his compensation package.
What are the key terms of Bernardo Melo’s new stock options in Algorhythm Holdings (RIME)?
Melo received non-qualified stock options to purchase 39,063 Algorhythm Holdings common shares at an exercise price of $1.28 per share. These options were granted under the 2022 Equity Incentive Plan and expire in 2035, vesting in equal quarterly installments over one year.
Are Bernardo Melo’s RIME equity awards immediately vested or subject to a schedule?
Both the restricted stock award and the stock options are subject to a vesting schedule. Each award vests in equal quarterly installments over one year from the grant date, meaning portions become earned each quarter rather than all at once.
Did the RIME Form 4 show any open-market buying or selling by Bernardo Melo?
The filing did not report any open-market purchases or sales. Instead, it showed compensation-related grants: a restricted stock award for 19,532 shares and non-qualified stock options for 39,063 shares, both recorded at a transaction price of $0.00 per share.
Under which plan were Bernardo Melo’s new RIME equity awards granted?
Both the restricted stock award and the non-qualified stock option were granted under the Algorhythm Holdings, Inc. 2022 Equity Incentive Plan. This plan governs the terms, including vesting schedules and conditions for receiving or exercising the awarded shares.