Form 8-K - Current report

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): March 3, 2025

 

Karat Packaging Inc.

(Exact name of registrant as specified in its charter)

 

Delaware		001-40336		83-2237832
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

6185 Kimball Avenue, Chino, CA 91708

(Address of principal executive offices) (Zip Code)

 

[phone]

Registrant’s telephone number, including area code:

 

N/A

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a -12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol		Name of each exchange on which registered
Common Stock, $0.001 par value per share		KRT		The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b -2 of this chapter).

 

Emerging growth company ☒

 

If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

 

 

 

 

 

Item 1.01. Entry into a Material Definitive Agreement

 

Pursuant to the terms of the Business Loan Agreement, as amended, dated February 23, 2018, between Lollicup USA Inc., a California corporation, as borrower, and Hanmi Bank, as lender, Karat Packaging Inc. (the "Company") has a line of credit that had a maximum borrowing capacity of $40,000,000 secured by the Company’s assets (the “Line of Credit”). On March 3, 2025, the Company entered into an amended Line of Credit, dated February 24, 2025, to (1) extend the maturity date to March 14, 2027, (2) reduce the revolving loan facility to $20,000,000, and (3) revise the interest on any Line of Credit borrowings to an annual rate of one month term Secured Overnight Financing Rate ("SOFR") plus 2.25%, with a SOFR floor of 1.00% (the "Amendment").

 

The foregoing description of the Amendment does not purport to be complete and is qualified in its entirety by the Amendment, a copy of which is attached to this Current Report on Form 8-K as Exhibit 10.1, and incorporated herein by reference.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit Number		Description
10.1		Change In Terms Agreement, dated February 24, 2025, by and between Lollicup USA Inc. and Hanmi Bank
104		Cover Page Interactive File (formatted as inline XBRL and contained in Exhibit 101)

 

1

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: March 7, 2025	KARAT PACKAGING INC.
	By:	/s/ Jian Guo
		Jian Guo
		Chief Financial Officer

 

2

 

Exhibit 10.1

 

Docusign Envelope ID: 7ECA7F1A - F5CB - 4A93 - 9A54 - 7BF66FB8A0EE THIS IS A COPY This is a copy view of the Authoritative Copy held by the designated custodian

Docusign Envelope ID: 7ECA7F1A - F5CB - 4A93 - 9A54 - 7BF66FB8A0EE THIS IS A COPY This is a copy view of the Authoritative Copy held by the designated custodian

Docusign Envelope ID: 7ECA7F1A - F5CB - 4A93 - 9A54 - 7BF66FB8A0EE THIS IS A COPY This is a copy view of the Authoritative Copy held by the designated custodian

Docusign Envelope ID: 7ECA7F1A - F5CB - 4A93 - 9A54 - 7BF66FB8A0EE THIS IS A COPY This is a copy view of the Authoritative Copy held by the designated custodian

Docusign Envelope ID: 7ECA7F1A - F5CB - 4A93 - 9A54 - 7BF66FB8A0EE THIS IS A COPY This is a copy view of the Authoritative Copy held by the designated custodian

Docusign Envelope ID: 7ECA7F1A - F5CB - 4A93 - 9A54 - 7BF66FB8A0EE THIS IS A COPY This is a copy view of the Authoritative Copy held by the designated custodian

Cover	Mar. 03, 2025
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Mar. 03, 2025
Entity File Number	001-40336
Entity Registrant Name	Karat Packaging Inc.
Entity Central Index Key	0001758021
Entity Tax Identification Number	83-2237832
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	6185 Kimball Avenue
Entity Address, City or Town	Chino
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	91708
City Area Code	626
Local Phone Number	965-8882
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	KRT
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false

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