Karat Packaging CFO Guo Jian Exercises Stock Options

What Happened
Guo Jian, Chief Financial Officer of Karat Packaging Inc. (KRT), exercised stock options on August 13, 2026, resulting in the acquisition of 4,700 common shares at an exercise price of $16.53 per share for a total cash outlay of $77,691. The filing also shows a corresponding disposition entry for 4,700 derivative units at $0.00, reflecting the conversion/extinguishment of the exercised options.

Key Details

• Transaction date: 2026-08-13 (reported on Form 4 filed 2026-08-14) — timely filing.
• Primary transaction: Exercise of options (transaction code M) — 4,700 shares acquired at $16.53 each = $77,691.
• Related derivative line: 4,700 derivative units marked disposed at $0.00, indicating the option was converted/removed upon exercise.
• Shares owned after transaction: Not specified in the provided filing.
• Footnote: F1 — the option vests in three equal annual installments beginning Feb 1, 2023.
• No immediate sale of the acquired shares or tax-withholding/net-share settlement is reported in this filing.

Context
An exercise (M) means the insider used vested options to buy company shares. Because no sale is reported, this is a purchase of stock rather than a disposition—often viewed as a neutral-to-bullish signal since the insider paid cash to acquire shares. The disposed $0.00 derivative entry is a bookkeeping result of converting the option into shares, not a market sale.