Algorhythm Holdings, Inc. (RIME) NSO Exercise Calculator

Calculator · free · no signup · RIME

Plan your Algorhythm Holdings, Inc. NSO exercise (federal, state, FICA) and compare sell-vs-hold for long-term capital gains.

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Your grant

pre-IPO? enter price manually

Tax inputs

Hold strategy

1 yr
20%
20%
10.0%

Best after-tax payout — at year 1

$199,080

Sell + invest wins by $20,783 over Hold 1 yr.

Estimates only. Not financial advice.

Your NSO exercise pushes your top federal rate from 24% to 35%. Hover the Federal value below for the bracket-by-bracket slicing.

Sell + invest

Best payout
Bargain element (sale − strike)$350,000
Federal
State
Medicare$5,075
Additional Medicare$3,150
Market gain over 1 yr at 10.0%$18,573
LTCG on diversified gain (fed + state + NIIT)$5,219
Net at year 1$199,080

Sell every share immediately; invest the after-tax cash at the market return for 1 yr, then liquidate. Diversified — no single-stock concentration risk.

Exercise + hold 1 yr

Sale proceeds (year 1)
LTCG tax (federal + state + NIIT)$0
Net at year 1$178,297

Sold 2,678 shares at exercise to cover strike + tax; 2,322 shares held 1 yr for LTCG.

Social Security + Medicare are payroll taxes (collectively called FICA) — they apply because you're exercising as a current employee.

Both columns are stated in year-1 dollars: sell-now proceeds compound at the market return and pay LTCG on the gain at year 1; any cash paid out of pocket on the hold side carries the same opportunity cost.

Net at year N — by hold period

Sell + investExercise + hold
$0$54K$108K$162K$216KYr 1Yr 2

Estimates only. Excludes AMT (NSOs do not trigger AMT), state-AMT, multi-state moves, and disqualifying-disposition edge cases. Not financial advice.

You calculated one NSO decision. The beta plans NSOs alongside RSUs and ISOs in a single multi-year tax plan.

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About Algorhythm Holdings, Inc.

Algorhythm Holdings, Inc. (RIME) is a public AI company.

Renamed from Singing Machine 2024; AI logistics.

Equity grants at Algorhythm Holdings, Inc. typically include incentive stock options (ISOs), non-qualified stock options (NSOs), and restricted stock units (RSUs).

Algorhythm Holdings (Nasdaq: RIME), headquartered in Fort Lauderdale, Florida, rebranded from The Singing Machine Company in September 2024 following its acquisition of SemiCab, an Atlanta-based AI freight optimization platform founded in 2018 by Ajesh Kapoor. SemiCab's cloud-based system coordinates loads and trucks across shipper-carrier networks, integrating with existing transportation management systems via API to reduce empty miles and stabilize freight costs. Customers include Procter and Gamble, Coca-Cola India, Unilever India, and Apollo Tyres. Q1 2026 revenue reached $2.4 million, up 71% sequentially, with an annualized run rate above $12 million as of April 2026.

Sources: globenewswire.com · globenewswire.com · globenewswire.com

Equity comp at Algorhythm Holdings, Inc.

  • RSUs use single-trigger vesting: shares become yours as each portion vests on schedule, and the value is taxed as ordinary income at that point. No IPO or acquisition is required.

Sources: sec.gov

Researched 2026-05-11.

OptionsAhoy is an independent tool and is not affiliated with, endorsed by, or sponsored by Algorhythm Holdings, Inc..

Use this calculator to estimate your Algorhythm Holdings, Inc. (RIME) NSO exercise tax (federal, state, FICA), then compare selling now versus holding through the long-term capital gains threshold. Inputs are yours: grant terms, current price, your income, your state.

All Algorhythm Holdings, Inc. tools → · Use the generic NSO Exercise Calculator for any company.

Algorhythm Holdings, Inc. equity questions

How is a Algorhythm Holdings, Inc. NSO exercise taxed?
Exercising a non-qualified stock option (NSO) creates ordinary income on the bargain element (the price on the day you exercise minus your strike), subject to federal income tax, state income tax, and FICA. The calculator above computes that tax for your Algorhythm Holdings, Inc. grant and compares selling the shares now against holding past the one-year mark for long-term capital-gains treatment.
Does Algorhythm Holdings, Inc. grant ISOs, NSOs, or RSUs?
Equity compensation at Algorhythm Holdings, Inc. typically takes the form of incentive stock options (ISOs), non-qualified stock options (NSOs), and restricted stock units (RSUs). Incentive stock options can trigger the alternative minimum tax (AMT) when you exercise. Restricted stock units are taxed as ordinary income when they vest.
Do Algorhythm Holdings, Inc. RSUs use double-trigger vesting?
No. Algorhythm Holdings, Inc. restricted stock units (RSUs) use single-trigger vesting: each tranche becomes yours as it vests on schedule, taxed as ordinary income at that point, with no liquidity event required.
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