[Form 4] Karat Packaging Inc. Insider Trading Activity

Rhea-AI Filing Summary

Insider exercise and stock acquisition reported for Karat Packaging Inc. (KRT). Chief Financial Officer and director Jian Guo exercised options on 08/15/2025 to acquire 2,450 shares at an exercise price of $16.53 per share. After the transaction Guo directly beneficially owns 29,701 common shares and indirectly owns 500 shares through his spouse. The filing also shows Guo holds a total of 36,550 option shares outstanding following the exercise, with the option terms indicating a $16.53 exercise price and an expiration date of 02/01/2032. The option vesting schedule began 02/01/2023 and vests in three equal annual installments.

Positive

• Exercise of stock options disclosed with full details including date (08/15/2025), price ($16.53) and number of shares (2,450).
• Post-transaction ownership clearly stated: 29,701 shares direct and 500 shares indirect (by spouse).
• Options schedule and expiration disclosed: vesting began 02/01/2023, vests in three equal annual installments, expiration 02/01/2032.

Negative

• None.

Insights

Securities Analyst

TL;DR: CFO Jian Guo exercised options for 2,450 shares at $16.53, increasing his direct holdings to 29,701 shares; routine insider activity.

This Form 4 discloses a standard option exercise by a named executive officer who is also a director. The report identifies the exercise date, strike price, number of shares acquired, and remaining option holdings (36,550 underlying shares post-transaction). The disclosed vesting schedule (three equal annual installments beginning 02/01/2023) explains timing of the exercisable portion. Based solely on the filing, this appears to be an internal compensation or incentive realization rather than an open-market purchase or sale; the filing contains no additional corporate developments or material events.

Corporate Governance Expert

TL;DR: Reported transaction documents executive compensation realization; disclosure is complete for a Form 4 and shows vested option mechanics.

The Form 4 provides required disclosure: reporting person, relationship to issuer (CFO and director), transaction codes, exercise price, post-transaction beneficial ownership, and vesting explanation. The presence of indirect ownership (500 shares held by spouse) and explicit vesting terms improves transparency. There are no indications in the filing of any related-party transfers, Rule 10b5-1 plan, or amendments; the filing appears routine and compliant with Section 16(a) reporting obligations.

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

OMB APPROVAL

OMB Number:			3235-0287
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hours per response:			0.5

Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

Check this box to indicate that a transaction was made pursuant to a contract, instruction or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). See Instruction 10.

1. Name and Address of Reporting Person^*

Guo Jian

(Last) (First) (Middle)

6185 KIMBALL STREET

(Street)

CHINO CA 91708

(City) (State) (Zip)

2. Issuer Name and Ticker or Trading Symbol
Karat Packaging Inc. [ KRT ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

X	Director		10% Owner
X	Officer (give title below)		Other (specify below)
	Chief Financial Officer

3. Date of Earliest Transaction (Month/Day/Year)
08/15/2025

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price
Common Stock	08/15/2025		M		2,450	A	$16.53	29,701	D
Common Stock								500	I	By Spouse

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Stock Option (right to buy)	$16.53	08/15/2025		M			2,450	(1)	02/01/2032	Common Stock	2,450	$0	36,550	D

Explanation of Responses:

1. The option vests in three, equal annual installments, which began on February 1, 2023.

	/s/ Jian Guo	08/18/2025
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.

FAQ

What transaction did Jian Guo report on Form 4 for KRT?

The report discloses an option exercise on 08/15/2025 acquiring 2,450 common shares at an exercise price of $16.53 per share.

How many KRT shares does Jian Guo own after the reported transaction?

After the transaction Guo beneficially owns 29,701 shares directly and 500 shares indirectly through his spouse.

How many option shares does the Form 4 show Jian Guo holds following the exercise?

The filing shows Guo has 36,550 option shares beneficially owned following the reported transaction, with an expiration date of 02/01/2032.

What are the vesting terms disclosed for the option?

The option vests in three equal annual installments, with vesting that began on 02/01/2023.

What roles does Jian Guo hold at Karat Packaging?

The Form 4 indicates Jian Guo is a director and the company’s Chief Financial Officer.