Karat Packaging Inc. Insider Trading Activity

Karat Packaging Inc. director Eric K. Chen acquired 1,000 shares of common stock on May 7, 2026 through the vesting and conversion of restricted stock units (RSUs).

Accepted by SEC EDGAR 05/11/2026 - 09:59 PM EDT Learn about SEC filing dates

Rhea-AI Filing Summary

Karat Packaging Inc. director Eric K. Chen acquired 1,000 shares of common stock on May 7, 2026 through the vesting and conversion of restricted stock units (RSUs). This was an exercise of derivative securities at a price of $0.00 per share, reflecting stock-based compensation rather than an open-market purchase.

These 1,000 vested RSUs each converted into one share of common stock, consistent with the grant terms. After this transaction, Chen directly holds 7,000 shares of Karat Packaging common stock. The RSUs stem from a grant of 2,000 RSUs awarded on May 7, 2024, scheduled to vest in two equal annual installments beginning May 7, 2025.

Insider Trade Summary

1,000 shares exercised/converted

Exercise 2 txns

Insider Chen Eric K

Role Director

Type	Security	Shares	Price	Value
Exercise	Restricted Stock Units	1,000	$0.00	$0.00
Exercise	Common Stock	1,000	$0.00	$0.00

Holdings After Transaction: Restricted Stock Units — 0 contracts (Direct); Common Stock — 7,000 shares (Direct)

Footnotes (3)

1. F1. Represents shares of Karat Packaging Inc.'s common stock received upon the vesting of restricted stock units ("RSUs").
2. F2. Each RSU represents a contingent right to receive one share of Karat Packaging Inc.'s common stock.
3. F3. On May 7, 2024, the reporting person was granted 2,000 RSUs. These RSUs were scheduled to vest in two equal, annual installments beginning on May 7, 2025.

Key Figures

Shares acquired via RSU vesting: 1,000 shares Holdings after transaction: 7,000 shares Original RSU grant size: 2,000 RSUs +2 more

5 metrics

Shares acquired via RSU vesting 1,000 shares Common stock received on May 7, 2026

Holdings after transaction 7,000 shares Total common stock directly held by Eric K. Chen

Original RSU grant size 2,000 RSUs Grant made on May 7, 2024 in two annual installments

Exercise/transaction price $0.00 per share Price for common shares received from RSU vesting

Derivative exercise transactions 1 transaction, 1,000 shares Exercise or conversion of derivative security (RSUs)

Key Terms

Restricted Stock Units, RSUs, derivative security, vest

4 terms

Restricted Stock Units financial

"Represents shares of Karat Packaging Inc.'s common stock received upon the vesting of restricted stock units ("RSUs")."

Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.

RSUs financial

"Each RSU represents a contingent right to receive one share of Karat Packaging Inc.'s common stock."

RSUs, or restricted stock units, are a form of company shares given to employees as part of their compensation. They are typically awarded with certain restrictions, such as a waiting period before they can be fully owned or sold, similar to earning a gift that becomes fully yours over time. For investors, RSUs can impact a company's stock offerings and reflect how much the company relies on stock-based incentives to attract and retain talent.

derivative security financial

"transaction_code_description": "Exercise or conversion of derivative security""

A derivative security is a financial contract whose value comes from the price or performance of something else, such as a stock, bond, commodity, or market index. For investors it acts like an insurance policy or a wager: it can be used to protect against losses, lock in prices, or amplify gains and losses, so it can change a portfolio’s risk and potential return without owning the underlying asset directly.

vest financial

"These RSUs were scheduled to vest in two equal, annual installments beginning on May 7, 2025."

A vest is the process by which an employee earns the right to receive certain benefits or ownership interests, such as stock or retirement funds, over time. It’s similar to earning a reward gradually, ensuring that the benefit becomes fully yours only after a set period or meeting specific conditions. This makes it important for investors because it determines when they can actually claim or use those benefits.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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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
Estimated average burden
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^*

Chen Eric K

(Last) (First) (Middle)

6185 KIMBALL STREET

(Street)

CHINO CALIFORNIA 91708

(City) (State) (Zip)

UNITED STATES

(Country)

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
	Officer (give title below)		Other (specify below)

2a. Foreign Trading Symbol

3. Date of Earliest Transaction (Month/Day/Year)
05/07/2026

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

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

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

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	05/07/2026		M		1,000	A	(1)	7,000	D

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
Restricted Stock Units	(2)	05/07/2026		M			1,000	(3)	(3)	Common Stock	1,000	$0	0	D

Explanation of Responses:

1. Represents shares of Karat Packaging Inc.'s common stock received upon the vesting of restricted stock units ("RSUs").

2. Each RSU represents a contingent right to receive one share of Karat Packaging Inc.'s common stock.

3. On May 7, 2024, the reporting person was granted 2,000 RSUs. These RSUs were scheduled to vest in two equal, annual installments beginning on May 7, 2025.

	/s/ Eric K. Chen	05/11/2026
	** 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.
* Form 4: SEC 1474 (03-26)