Karat Packaging Inc.
For the period ended Dec 31, 2024. Filed Mar 14, 2025.
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FY2024 · Filed Mar 14, 2025
KRT$37.79+3.5%Stored close · as of Nov 10, 2026
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Item 8. Consolidated Statements of Cash Flows
KARAT PACKAGING, INC. AND SUBSIDIARIES
(In thousands)
| Year Ended December 31, | ||
|---|---|---|
| 2024 | 2023 | |
| Cash flows from operating activities | ||
| Net income | $30,824 | $33,180 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization (including $1,213 and $1,214 associated with variable interest entity for the year ended December 31, 2024 and 2023, respectively) | 10,675 | 10,783 |
| Adjustments to allowance for bad debt | 468 | (711) |
| Adjustments to inventory reserve | 290 | (399) |
| Write-off of inventories | 1,458 | 3,897 |
| Impairment of deposits | — | 549 |
| Write-off of vendor prepayment | — | 1,124 |
| Impairment of operating right-of-use asset | 1,993 | — |
| Loss, net, on disposal of machinery and equipment | 759 | 2,002 |
| Amortization of loan fees (including $62 and $57 associated with variable interest entity for the year ended December 31, 2024 and 2023, respectively) | 92 | 81 |
| Accrued interest on certificates of deposit (including $50 and $0 associated with variable interest entity for the year ended December 31, 2024 and 2023, respectively) | (50) | (155) |
| Stock-based compensation | 2,065 | 770 |
| Amortization of operating right-of-use assets | 7,622 | 4,969 |
| Deferred income taxes | (3,771) | (959) |
| Government grant income (including $187 and $0 associated with variable interest entity for the year ended December 31, 2024 and 2023, respectively) | (360) | — |
| (Increase) decrease in operating assets | ||
| Accounts receivable (including $32 and $6 associated with variable interest entity for the year ended December 31, 2024 and 2023, respectively) | 559 | 2,860 |
| Inventories | (942) | (3,820) |
| Prepaid expenses and other current assets (including $23 and $109 associated with variable interest entity for the year ended December 31, 2024 and 2023, respectively) | 2,776 | (466) |
| Other non-current assets (including $20 and $14 associated with variable interest entity for the year ended December 31, 2024 and 2023, respectively) | (79) | 1,439 |
| Increase (decrease) in operating liabilities | ||
| Accounts payable (including $47 and $60 associated with variable interest entity for the year ended December 31, 2024 and 2023, respectively) | (260) | 696 |
| Accrued expenses (including $102 and $34 associated with variable interest entity for the year ended December 31, 2024 and 2023, respectively) | 2,979 | 1,571 |
| Related party payable | (2,176) | 366 |
| Income taxes payable (including $3 and $0 associated with variable interest entity for the year ended December 31, 2024 and 2023, respectively) | 65 | — |
| Deferred revenue (including $0 and $49 associated with variable interest entity for the year ended December 31, 2024 and 2023, respectively) | (281) | (330) |
| Operating lease liabilities | (6,679) | (4,642) |
| Other liabilities | (45) | 574 |
| Net cash provided by operating activities | $47,982 | $53,379 |
| Year Ended December 31, | ||
|---|---|---|
| 2024 | 2023 | |
| Cash flows from investing activities | ||
| Purchases of property and equipment | (934) | (2,835) |
| Proceeds from disposal of property and equipment | 134 | 841 |
| Payments for costs incurred from sale of machinery and equipment | — | (186) |
| Deposits paid for joint venture investment | — | (2,900) |
| Deposits refunded from joint venture investment | — | 6,900 |
| Deposits refunded from cancelled machinery orders | — | 503 |
| Deposits paid for property and equipment | (3,134) | (6,309) |
| Purchases of publicly-traded equity securities | 29 | — |
| Purchases of short-term investments (including $18,078 and $8,000 associated with variable interest entity for the year ended December 31, 2024 and 2023, respectively) | (50,806) | (49,188) |
| Redemption of short-term investments (including $7,000 and $8,000 associated with variable interest entity for the year ended December 31, 2024 and 2023, respectively) | 48,856 | 23,000 |
| Net cash used in investing activities | $(5,855) | $(30,174) |
| Cash flows from financing activities | ||
| Proceeds from long-term debt (including $0 and 8,000 associated with variable interest entity for the year ended December 31, 2024 and 2023, respectively) | — | 8,000 |
| Payments for lender fees | — | (61) |
| Payments on long-term debt (including $1,122 and $1,010 associated with variable interest entity for the year ended December 31, 2024 and 2023, respectively) | (1,122) | (1,010) |
| Tax withholding on vesting of restricted stock units | — | (18) |
| Proceeds from exercise of common stock options | 725 | 123 |
| Dividends paid to shareholders | (31,016) | (20,909) |
| Distributions to shareholders, net of tax withholding (including $0 and $2,295 associated with variable interest entity for the year ended December 31, 2024 and 2023, respectively) | — | (2,295) |
| Payment for Global Wells noncontrolling membership interest redemption (including $2,010 and $0 associated with variable interest entity for the year ended December 31, 2024 and 2023, respectively) | (2,326) | — |
| Refund of Global Wells members' tax withholding payments (including $120 and $0 associated with variable interest entity for the year ended December 31, 2024 and 2023, respectively) | 120 | — |
| Net cash used in financing activities | $(33,619) | $(16,170) |
| Net increase in cash and cash equivalents | $8,508 | $7,035 |
| Cash and cash equivalents | ||
| Beginning of period | $23,076 | $16,041 |
| End of period | $31,584 | $23,076 |
| Supplemental disclosures of non-cash investing and financing activities: | ||
| Transfers from deposits to property and equipment | $3,708 | $10,463 |
| Non-cash purchases of property and equipment | $122 | $148 |
| Supplemental disclosures of cash flow information: | ||
| Cash paid for income taxes | $10,969 | $11,765 |
| Cash paid for interest | $2,031 | $1,996 |
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