Andre Alex 4

What Happened

• Andre Alex, Chief Financial Officer and General Counsel of Algorhythm Holdings (RIME), received a non‑qualified stock option to purchase 47,636 shares on 2026-05-11 (reported on Form 4 filed 2026-05-13). The filing also reports the cancellation of a previously granted restricted stock award for 23,818 shares and the cancellation of a previously granted non‑qualified stock option for 23,818 shares. All reported transactions show $0 cash consideration because these are derivative grant/cancellation events, not open‑market sales or purchases.

Key Details

• Transaction date: 2026-05-11; Form 4 filed: 2026-05-13 (appears timely).
• Reported amount/price: grant and cancellations reported at $0 (standard for option awards/cancellations).
• New award: non‑qualified option for 47,636 shares granted under the Algorhythm Holdings, Inc. 2022 Equity Incentive Plan.
• Cancellations: restricted stock award (23,818 shares) and prior option (23,818 shares) were cancelled per the filing.
• Vesting per filing: a total of 14,636 shares vested on the grant date, with 3,666.667 shares vesting each quarter thereafter (per footnotes); filing also notes a schedule that references 25% on first anniversary and quarterly vesting thereafter.
• Shares owned after transaction: not specified in the Form 4 (the filing does not report total beneficial ownership).
• No sale/exercise reported — this is a compensation/option grant event, not a cash transaction.

Context

• This filing records a grant and cancellations (derivative transactions). A non‑qualified option gives the holder the right to buy shares later subject to the vesting schedule; it is not an immediate purchase of stock and does not by itself produce proceeds.
• Cancellations plus a regrant can reflect routine equity‑compensation housekeeping (e.g., restructures, exchanges, or refresh grants); the filing provides the mechanics and vesting but does not state the reason.
• For retail investors: grants are informative about executive compensation but do not necessarily indicate the insider is buying or selling shares in the market.