Algorhythm Holdings, Inc. (RIME) RSU sell-vs-hold
Calculator · free · no signup · RIMESell at vest or hold? Compare after-tax payout from selling Algorhythm Holdings, Inc. RSUs at vest vs. holding through the LTCG cliff at 12 months.
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Your vest
Tax inputs
Hold strategy
@ 20.0% / yr
Best after-tax payout — at year 1 yr
$47,823
Sell + invest wins by $4,992 over Hold 1 yr.
Estimates only. Not financial advice.
Heads-up: under-withholding. Your employer withholds federal tax at the IRS supplemental rate (22.0% on this vest, ≈ $17,600). Your marginal federal rate on this vest is 32.6%, owing $26,065. Expect to settle the $8,465 gap at tax time.
The hidden purchase
Tax was paid at vest either way. Holding is mathematically equivalent to taking $44,615 in after-tax cash and buying $44,615 of RIME today.
Most diversification frameworks would suggest no, but the right answer depends on your conviction in RIME. Holding past one year converts the gain to LTCG.
Sell + invest
Best payout| Vest value (shares × price) | $80,000 |
| Federal | |
| State | |
| Medicare | −$1,160 |
| Additional Medicare | −$720 |
| Market gain over 1 yr at 10.0% | $4,462 |
| Cap-gain tax on diversified gain — LTCG (federal + state + NIIT) | −$1,254 |
| Net at year 1 yr | $47,823 |
Sell every share at vest; invest the after-tax cash at the market return for 1 yr, then liquidate. Diversified — no single-stock concentration risk.
Hold 1 yr
| Vest value (shares × price) | $80,000 |
| Vest tax (federal + state + FICA) | |
| Net at year 1 yr | $42,830 |
Sold 442 shares to cover vest tax (net-settled); kept 558 shares 1 yr to qualify for long-term capital gains.
Social Security + Medicare are payroll taxes (collectively called FICA) — they apply because you're still employed at vest.
Both columns are stated in year-1 yr dollars. The sell side compounds at the market return; the hold side compounds at your single-stock expected return after a 20% volatility drag.
Estimates only. Assumes net-settled (sell-to-cover) vesting; double-trigger and pre-IPO RSUs are out of scope. Excludes multi-state moves, AMT interactions on other equity, and 83(b) elections. Not financial advice.
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, Inc. (Nasdaq: RIME) is the rebranded successor to The Singing Machine Company, a Fort Lauderdale, Florida consumer-electronics firm incorporated in 1982. CEO Gary Atkinson repositioned the company around SemiCab, an AI-powered collaborative freight-logistics platform co-founded by Ajesh Kapoor and Vivek Sehgal in 2018. Algorhythm sold the Singing Machine karaoke unit for $4.5 million in August 2025 and reported $4.4 million in 2025 revenue (up 1,367% year over year), with SemiCab's annualized run rate surpassing $12 million as of early 2026.
Sources: globenewswire.com · finance.yahoo.com
OptionsAhoy is an independent tool and is not affiliated with, endorsed by, or sponsored by Algorhythm Holdings, Inc..
Algorhythm Holdings, Inc. (RIME) is a public AI company. Renamed from Singing Machine 2024; AI logistics. RSUs vest as ordinary income at the price on vest day. The decision is whether to sell at vest and reinvest, or hold the shares through the 12-month LTCG cliff. This calculator runs both paths through the same after-tax math so you can compare like-for-like.
All Algorhythm Holdings, Inc. tools → · Use the generic RSU Sell-vs-Hold Calculator for any company.
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