Plan your K2 Space NSO exercise
Calculator · free · no signup · pre-IPOK2 Space is pre-IPO. Plan your NSO exercise tax (federal, state, FICA) at any expected valuation.
Beta · invite-only · AlphaLatitude Inc. · Free Tools
Your grant
Tax inputs
Hold strategy
Best after-tax payout — at year 1
$199,080
Sell + invest wins by $20,783 over Hold 1 yr.
Estimates only. Not financial advice.
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
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.
Request beta access →About K2 Space
K2 Space is a privately held Aerospace/Defense company, headquartered in Torrance, CA.
Defense satellites.
Equity grants at K2 Space typically include incentive stock options (ISOs) and non-qualified stock options (NSOs).
K2 Space, founded in 2022 by brothers Karan Kunjur and Neel Kunjur, alumni of SpaceX, Kitty Hawk, BCG, and Text IQ, builds high-powered satellite platforms designed to operate at scales previously only possible with government programs. The company launched its first test satellite, Heritage, in January 2025 and is preparing to launch Gravitas, a two-metric-ton satellite with a 40-meter wingspan generating 20 kW. K2 raised $110 million in a Series B in February 2025, then closed a $250 million round in early 2026 at a $3 billion valuation.
Sources: washingtontechnology.com
OptionsAhoy is an independent tool and is not affiliated with, endorsed by, or sponsored by K2 Space.
K2 Space NSO exercise creates ordinary income on the bargain element (federal, state, and FICA) at the price on the day you exercise. The calculator works at any valuation, so you can model your exercise cost at the current 409A FMV, an expected IPO price, or post-IPO scenarios.
All K2 Space tools → · Use the generic NSO Exercise Calculator for any company.
K2 Space equity questions
- How is a K2 Space 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 K2 Space grant and compares selling the shares now against holding past the one-year mark for long-term capital-gains treatment.
- Does K2 Space grant ISOs, NSOs, or RSUs?
- Equity compensation at K2 Space typically takes the form of incentive stock options (ISOs) and non-qualified stock options (NSOs). Incentive stock options can trigger the alternative minimum tax (AMT) when you exercise.
- Are K2 Space shares eligible for QSBS?
- They might be. Qualified small business stock (QSBS) under Internal Revenue Code Section 1202 can exclude federal tax on much of the gain when shares were acquired at original issuance from a C-corporation while its gross assets were under $50 million, and held at least five years. Whether your K2 Space shares qualify turns on when you acquired them and the company's asset size at that time.
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OptionsAhoy plans your K2 Space equity alongside hedging, vesting, and de-concentration, across bullish, neutral, and bearish market scenarios. Free during beta.