Business Context and Reporting Period
Karat Packaging Inc. (KRT) filed a Form 8-K on March 13, 2026, reporting a change in its independent registered public accounting firm. The filing covers the period through March 13, 2026, and pertains to the fiscal year ending December 31, 2026.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on the appointment and dismissal of the company's auditors.
Material Changes
- Appointment of New Auditor: The Audit Committee approved the engagement of BDO USA, P.C. as the independent registered public accounting firm for the fiscal year ending December 31, 2026, effective March 13, 2026.
- Dismissal of Prior Auditor: PricewaterhouseCoopers LLP (PwC) was dismissed as the independent accountant effective March 13, 2026.
- Audit Opinions: PwC's reports for the years ended December 31, 2025, and 2024 were unqualified and contained no adverse opinions, disclaimers, or modifications regarding uncertainty, scope, or accounting principles.
- Disagreements: There were no disagreements between the Company and PwC regarding accounting principles, practices, or audit scope during the relevant periods.
Outlook, Risks, and Contingencies
The filing discloses historical "reportable events" related to internal controls that have since been remediated:
- 2023 Material Weaknesses: Issues regarding IT general controls and entity-level controls were disclosed in the 2023 10-K and were remediated as of December 31, 2024.
- 2024 Material Weakness: A weakness regarding segregation of duties for journal entries was disclosed in the 2024 10-K and was remediated as of March 31, 2025.
- Consultation with New Auditor: The Company did not consult with BDO regarding accounting principles or audit opinions prior to this engagement.
Investor Verification Checklist
- Verify the reasons for the auditor change by reviewing the attached letter from PwC (Exhibit 16.1).
- Confirm the status of the remediation of the previously disclosed internal control weaknesses in the most recent 10-K filings.
- Monitor future filings for the first audit opinion issued by BDO USA, P.C.
- Review the Company's 10-K for the year ended December 31, 2025, for detailed financial metrics absent from this 8-K.