Karat Packaging Inc. 8-K

What Happened
Karat Packaging Inc. (KRT) filed an 8‑K reporting that on March 13, 2026 its Audit Committee approved the dismissal of PricewaterhouseCoopers LLP (PwC) and the engagement of BDO USA, P.C. (BDO) as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2026. The filing was signed by CFO Jian Guo on March 17, 2026.

Key Details

• Effective date of change: March 13, 2026 (PwC dismissed; BDO engaged).
• PwC’s audit reports for the years ended December 31, 2025 and 2024 were unmodified (no adverse opinion, disclaimer, qualification, or modification).
• No “disagreements” or reportable events with PwC for 2024–2025 and through March 13, 2026, except previously disclosed material weaknesses in internal control that were remediated:
  • IT general controls and entity‑level controls issues disclosed in the 2023 Form 10‑K, remediated as of December 31, 2024.
  • Segregation‑of‑duties journal entry control weakness disclosed in the 2024 Form 10‑K, remediated as of March 31, 2025.
• The company provided PwC a copy of the Form 8‑K and requested a letter to the SEC; that letter is attached as Exhibit 16.1.
• The company and its representatives did not consult with BDO on accounting or auditing matters during 2024–2025 or the interim period through March 13, 2026.

Why It Matters
An auditor change is material to investors because it affects who independently reviews the company’s financial statements. This filing shows the transition was orderly: PwC’s prior opinions were unmodified, there were no unresolved disagreements, and previously disclosed internal control weaknesses have been reported as remediated. Investors should note the new auditor (BDO) for future financial reports and disclosures, and watch upcoming filings for any changes in audit fees, scope, or auditor comments.