Karat Packaging (NASDAQ: KRT) director receives 1,000 shares from RSU vesting

Rhea-AI Filing Summary

Karat Packaging Inc. director Paul Y. Chen reported a routine equity compensation event involving restricted stock units (RSUs). On May 7, 2026, 1,000 RSUs converted into 1,000 shares of common stock, increasing his directly held common shares to 7,000.

The derivative RSU position tied to these 1,000 shares was fully settled and now shows zero remaining units. Footnotes explain that each RSU represented a right to receive one share of common stock and that 2,000 RSUs were originally granted on May 7, 2024, vesting in two equal annual installments beginning May 7, 2025.

Insider Trade Summary

1,000 shares exercised/converted

Mixed 2 txns

Insider Chen Paul Y

Role null

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

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

Footnotes (1)

1. Represents shares of Karat Packaging Inc.'s common stock received upon the vesting of restricted stock units ("RSUs"). Each RSU represents a contingent right to receive one share of Karat Packaging Inc.'s common stock. 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

RSUs converted: 1,000 units Shares received: 1,000 shares Shares held after transaction: 7,000 shares +2 more

5 metrics

RSUs converted 1,000 units Restricted Stock Units converted to common stock on May 7, 2026

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

Shares held after transaction 7,000 shares Total directly held Karat Packaging common stock after RSU conversion

Original RSU grant 2,000 RSUs RSUs granted on May 7, 2024, vesting in two equal annual installments

Exercise price $0.00 per share Reported price per share for RSU conversion into common stock

Key Terms

Restricted Stock Units, RSUs, derivative security

3 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

"On May 7, 2024, the reporting person was granted 2,000 RSUs."

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.

Form 4 Insider Transactions: What Each Field Means →

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 Paul Y

(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/ Paul Y. 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)

FAQ

What insider transaction did Karat Packaging (KRT) director Paul Y. Chen report?

Director Paul Y. Chen reported the vesting of 1,000 restricted stock units into 1,000 shares of Karat Packaging common stock. This is a compensation-related equity award vesting, not an open-market purchase or sale, and reflects a standard equity incentive arrangement.

How many Karat Packaging (KRT) shares does Paul Y. Chen hold after this Form 4?

After the RSU vesting, Paul Y. Chen directly holds 7,000 shares of Karat Packaging common stock. This total reflects the additional 1,000 shares received upon conversion of restricted stock units reported in the Form 4 transaction on May 7, 2026.

What happened to the 1,000 restricted stock units in the Karat Packaging (KRT) Form 4?

The 1,000 restricted stock units were exercised or converted into 1,000 shares of Karat Packaging common stock. Following this conversion, the RSU balance related to this tranche is now zero, indicating the derivative position was fully settled in shares.

When were the Karat Packaging (KRT) RSUs originally granted to Paul Y. Chen?

Footnotes state that on May 7, 2024, Paul Y. Chen was granted 2,000 restricted stock units. These RSUs were scheduled to vest in two equal, annual installments beginning on May 7, 2025, forming the basis for the 1,000-unit vesting now reported.

Is the Karat Packaging (KRT) Form 4 transaction a market sale or purchase?

The Form 4 reflects an RSU vesting and derivative exercise, not a market sale or open-market purchase. Shares were received at a reported price of $0.00 per share as part of an equity compensation plan, rather than through trading on the open market.