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CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Current assets    
Cash and cash equivalents (including $1,488 and $1,703 associated with variable interest entity at December 31, 2025 and December 31, 2024, respectively) $ 37,880 $ 31,584
Short-term investments (including $0 and $11,128 associated with variable interest entity at December 31, 2025 and December 31, 2024, respectively) 0 28,343
Accounts receivable net 36,402 26,736
Inventories 81,682 70,722
Prepaid expenses and other current assets (including $314 and $27 associated with variable interest entity at December 31, 2025 and December 31, 2024, respectively) 5,224 3,612
Total current assets 161,188 160,997
Property and equipment, net (including $41,758 and $42,972 associated with variable interest entity at December 31, 2025 and December 31, 2024, respectively) 81,159 87,982
Deposits 0 36
Goodwill 3,510 3,510
Intangible assets, net 273 300
Operating right-of-use assets 40,299 40,628
Deferred tax assets 255 0
Other non-current assets (including $68 and $34 associated with variable interest entity at December 31, 2025 and December 31, 2024, respectively) 1,002 1,069
Total assets 287,686 294,522
Current liabilities    
Accrued expenses (including $535 and $489 associated with variable interest entity at December 31, 2025 and December 31, 2024, respectively) 13,460 13,555
Income taxes payable (including $0 and $3 associated with variable interest entity at December 31, 2025 and December 31, 2024, respectively) 0 65
Deferred revenue 713 742
Long-term debt, current portion (including $12,941 and $1,179 associated with variable interest entity at December 31, 2025 and December 31, 2024, respectively) 12,941 1,179
Operating lease liabilities, current portion 11,982 8,977
Other current liabilities (including $49 and $916 associated with variable interest entity at December 31, 2025 and December 31, 2024, respectively) 129 968
Total current liabilities 70,220 46,447
Deferred tax liability 2,936 426
Long-term debt, net of current portion and debt discount of $78 and $141 at December 31, 2025 and December 31, 2024, respectively (including $22,862 and $47,279 associated with variable interest entity at December 31, 2025 and December 31, 2024, respectively, and debt discount of $78 and $141 associated with variable interest entity at December 31, 2025 and December 31, 2024, respectively) 22,862 47,279
Operating lease liabilities, net of current portion 32,074 35,435
Other non-current liabilities (including $1,224 and $1,198 associated with variable interest entity at December 31, 2025 and December 31, 2024, respectively) 2,724 2,736
Total liabilities 130,816 132,323
Commitments and Contingencies (Note 17)
Karat Packaging Inc. stockholders’ equity    
Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares issued and outstanding, as of both December 31, 2025 and December 31, 2024 0 0
Common stock, $0.001 par value, 100,000,000 shares authorized, 20,122,505 and 19,962,131 shares issued and outstanding, respectively, as of December 31, 2025, and 20,059,505 and 20,036,505 shares issued and outstanding, respectively, as of December 31, 2024 20 20
Additional paid in capital 90,939 89,457
Treasury stock, 0.001 par value, 160,374 and 23,000 shares as of December 31, 2025 and December 31, 2024 respectively (3,246) (248)
Retained earnings 61,704 66,340
Total Karat Packaging Inc. stockholders’ equity 149,417 155,569
Noncontrolling interest 7,453 6,630
Total stockholders’ equity 156,870 162,199
Total liabilities and stockholders’ equity 287,686 294,522
VIE, Primary Beneficiary    
Current assets    
Cash and cash equivalents (including $1,488 and $1,703 associated with variable interest entity at December 31, 2025 and December 31, 2024, respectively) 1,488 1,703
Short-term investments (including $0 and $11,128 associated with variable interest entity at December 31, 2025 and December 31, 2024, respectively) 0 11,128
Prepaid expenses and other current assets (including $314 and $27 associated with variable interest entity at December 31, 2025 and December 31, 2024, respectively) 314 27
Property and equipment, net (including $41,758 and $42,972 associated with variable interest entity at December 31, 2025 and December 31, 2024, respectively) 41,758 42,972
Other non-current assets (including $68 and $34 associated with variable interest entity at December 31, 2025 and December 31, 2024, respectively) 68 34
Current liabilities    
Accounts payable (including $97 and $16 associated with variable interest entity at December 31, 2025 and December 31, 2024, respectively) 97 16
Accrued expenses (including $535 and $489 associated with variable interest entity at December 31, 2025 and December 31, 2024, respectively) 535 489
Accounts payable 97 16
Income taxes payable (including $0 and $3 associated with variable interest entity at December 31, 2025 and December 31, 2024, respectively) 0 3
Long-term debt, current portion (including $12,941 and $1,179 associated with variable interest entity at December 31, 2025 and December 31, 2024, respectively) 12,941 1,179
Other current liabilities (including $49 and $916 associated with variable interest entity at December 31, 2025 and December 31, 2024, respectively) 49 916
Other non-current liabilities (including $1,224 and $1,198 associated with variable interest entity at December 31, 2025 and December 31, 2024, respectively) 1,224 1,198
Nonrelated Party    
Current liabilities    
Accounts payable (including $97 and $16 associated with variable interest entity at December 31, 2025 and December 31, 2024, respectively) 26,323 17,831
Accounts payable 26,323 17,831
Related Party    
Current liabilities    
Accounts payable (including $97 and $16 associated with variable interest entity at December 31, 2025 and December 31, 2024, respectively) 4,672 3,130
Accounts payable $ 4,672 $ 3,130