What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2026-03-13 compared with 2025-03-14 · 113 added, 100 removed, 277 unchanged (43% of the section changed)

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References to “Global Wells” or “our variable interest entity” refer to Global Wells Investment Group LLC, a Texas limited liability company and our consolidated variable interest entity, in which the Company has an equity interest and which is controlled by one of our stockholders.

References to “Lollicup” refer to Lollicup USA Inc., a California corporation, our wholly-owned subsidiary.

References to “Lollicup” refer to Lollicup USA Inc., our wholly-owned subsidiary incorporated in California in 2001 and redomesticated to the State of Texas in October 2025.

We are a rapidly-growing and nimble distributor and manufacturer of disposable foodservice products and related items, including food and take-out containers, bags, boxes, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, gloves, janitorial supplies, and other products.

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We believe we have established ourselves as a differentiated provider of high-quality products relative to our competitors.

Our operating model entails generating the majority of our revenue from the distribution of products sourced from a diversified global network of over 140 vendors, complemented by select manufacturing capabilities in the U.S., which allows us to provide customers with broad product choices and customized offerings with short lead times.

Our operating model entails generating the majority of our revenue from the distribution of products sourced from a diversified global network of nearly 150 vendors, complemented by select manufacturing capabilities in the U.S., which allows us to provide customers with broad product choices and customized offerings with short lead times.

This model provides us with the flexibility to adjust the mix of our product offering from import and manufacturing in evolving economic environments to drive operating efficiency and sustained margin expansion and ensure quality of our customer service and product availability during global supply chain disruptions.

Starting in 2023 and continuing into 2025, in light of the rising domestic labor and other operating costs and dropping ocean freight rates, we executed a strategy to pivot into a more asset-light model by increasing imports and scaling back domestic manufacturing.

At the same time, we have expanded our vendor network by prioritizing strong partnerships with reliable and cost-efficient sources.

This has enabled us to diversify our supplier base, minimize reliance on individual suppliers, enhance the resilience of our supply chain, expand our margin and improve our operating cash flows.

While we largely maintained our manufacturing infrastructure, we disposed of certain production machinery and related raw materials and reduced our production workforce.

Although we expect manufacturing to remain a relatively small portion of our sales mix going forward, we plan to keep manufacturing capabilities domestically to retain our nimble business model.

Amidst the evolving tariff environment, we have placed our strategic emphasis on expanding and diversifying our global vendor network to enhance the resilience of our supply chain, minimize tariff impact on our operations and financial results, and maintain a strong margin profile and operating cash flows.

We are prioritizing strong partnerships with reliable and cost-efficient sources and more favorable trade terms, negotiating additional vendor support, exploring opportunities to collaborate with vendors in new countries and geographies, while reallocating our own domestic production capabilities to optimize overall product margin.

Although we have scaled back domestic manufacturing since 2023 by disposing of certain production machinery and related raw materials and reducing our production workforce, we have largely maintained our manufacturing infrastructure in the U.S.

While we expect manufacturing to remain a relatively small portion of our sales mix going forward, we plan to keep manufacturing capabilities domestically to retain our nimble business model and resilient supply chain.

For the year ended December 31, 2025, manufacturing accounted for approximately 9% of our net sales, down from 11% in the prior year.

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Our products are well suited to address our customers’ needs towards take-out and food delivery orders.

Our diverse and growing blue chip customer base includes well-known fast casual chains such as Applebee’s Neighborhood Grill + Bar, Chili’s Grill & Bar, PF Chang's China Bistro, Chipotle Mexican Grill, and Corner Bakery Cafe, and fast food chains such as The Coffee Bean & Tea Leaf, El Pollo Loco, In-N-Out Burger, Jack in the Box, Panda Express, and Raising Cane’s Chicken Fingers.

Additionally, in 2024, we initiated a strategic emphasis on expanding into the supermarket segment.

We have gained prominent grocery chain customers such as Albertsons and H-E-B, and we expect this sector to be one of the most significant growth drivers for our business.

Our diverse and growing blue chip customer base includes well-known fast casual chains such as Applebee’s Neighborhood Grill + Bar, Chili’s Grill & Bar, PF Chang's China Bistro, Chipotle Mexican Grill, and Olive Garden, fast food chains such as The Coffee Bean & Tea Leaf, El Pollo Loco, In-N-Out Burger, Jack in the Box, Panda Express, and Raising Cane’s Chicken Fingers.

Additionally, in 2025, we initiated a strategic emphasis on growing our paper bag business.

We have won a paper bag contract with one of our largest national chain accounts with forecast annualized revenue of approximately $17.0 million, and we are looking into replicating the success with our other customers.

We expect our paper bag business to significantly scale, and become one of the most significant growth drivers for our business in the next two to three years.

As our capabilities, product offering, and footprint expand, we aim to broaden our reach to national and regional airlines, entertainment venues, and other non-restaurant customers.

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We are an omni-channel provider and have made significant investments in e-commerce, distribution network, technology, supply chain, and customer initiatives, such as online ordering and same day pickup.

We operate our e-commerce channel through our company storefront at www.lollicupstore.com and through our mobile app, available for download on both Apple and Android platforms, as well as third-party storefronts on Amazon, Walmart, eBay, and TikTok.

We operate our e-commerce

channel through our company storefront at www.lollicupstore.com and through our mobile app, available for download on both Apple and Android platforms, as well as third-party storefronts on Amazon, Walmart, eBay, TikTok, and Sysco.

Our e-commerce platforms allow us to offer our entire range of products for online procurement and cross market other products to our customers.

These platforms also provide us with the opportunity to continue our expansion into the business-to-consumer ("B2C") market in addition to the business-to-business ("B2B") small retailer customers that we have traditionally served.

We have elevated our focus on servicing the B2C market by sourcing products tailored for and geared toward these end-users.

have continued to invest in expanding our e-commerce team and improving and scaling our online marketing efforts.

Our e-commerce channel, which typically carries a higher margin, significantly outperformed all other channels in year-over-year revenue growth in 2024, and we believe the e-commerce channel will continue to be a key growth driver in our business.

We classify our customers into four categories:

distributors, national and regional chains, retail and e-commerce/online.

• Distributors :

national and regional distributors across the U.S.

that purchase our products and provide a channel to offer our products to restaurants, offices, schools, government entities and other end users.

• National and regional chains :

typically fast casual, fast food restaurants, and supermarket chains with locations across multiple states to which we supply specified products.

We have continued to invest in expanding our e-commerce team and optimizing our online marketing efforts.

We classify our customers into three categories:

chains and distributors, retail, and e-commerce/online.

• Chains and distributors :

National and regional chains customers are typically fast casual, fast food restaurants, and supermarket chains with locations across multiple states.

We enter into floor stocking agreements with a subset of our national and regional chains customers, providing some visibility into future revenue.

Chain accounts often order through their designated distribution partners.

National and regional distributors typically purchase our products to resell to restaurants, offices, schools, government entities and other businesses.

Primarily regional bubble tea shops, boutique coffee shops, frozen yogurt shops and small mom-and-pop restaurants that often purchase our specialty beverage ingredients and related items.

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We believe that the current industry environment and regulatory landscape has accelerated the shift in consumer preferences towards take-out orders, food delivery, and eco-friendly sustainable products, which we expect to continue in the foreseeable future.

As we broaden our reach and expand into new geographic areas, we have taken significant steps to strengthen our sales force and to scale our distribution network.

As we broaden our reach and expand into new product categories and geographic areas, we have taken significant steps to strengthen our sales force and to scale our distribution network.

We have added new sales representatives and regional managers to ensure localized expertise and better customer engagement in key markets.

Additionally, we recognize the value of internal growth and development within our organization, exemplified by the promotion of our inaugural Chief Revenue Officer in 2023 as well as regional sales directors.

Additionally, we recognize the value of internal growth and development within our organization, exemplified by the promotion of our regional sales directors in 2025.

These strategic appointments underscore our commitment to fostering leadership from within and aligning our sales strategy with long-term growth objectives.

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Puyallup, Washington;

Summerville, South Carolina;

Kapolei, Hawaii;

Sugar Land, Texas;

Aurora, Illinois;

and Mesa, Arizona.

In the past 24 months, we opened new warehouses in Mesa, Arizona, Sugar Land, Texas and Aurora, Illinois, adding over 232,000 square feet of distribution space.

Further, as described in Note 22 — Subsequent Events in the Notes to the Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K, on March 3, 2025, we entered into a lease agreement for an additional 187,000 square foot distribution center in Chino, California, to support our anticipated growth.

We are currently in the process of setting up this location to be fully operational by the second quarter of 2025.

Additionally, we also racked up more areas in existing warehouses, with over 50,000 square feet of new racked space added in 2024 and 2023 combined.

and Aurora, Illinois.

In the past 24 months, we opened a second warehouse in Chino, California and a new warehouse in Mesa, Arizona, adding over 230,000 square feet of distribution space.

Additionally, we also expanded capacity in existing warehouses.

Our distribution and fulfillment centers are strategically located in proximity to major population centers, including the Los Angeles, New York, Chicago, Phoenix, Dallas, Houston, Seattle, Atlanta and Honolulu metro areas.

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We believe the following strengths fundamentally differentiate us from our competitors and drive our success:

Extensive portfolio of disposable foodservice products

We leverage our diversified global supplier network and domestic production capabilities to offer customers a wide selection of single-use disposable foodservice products and specialty food and beverage products with over 6,900 SKUs across a broad range of product categories.

Key offerings include food and take-out containers, bags, boxes, tableware, cups, lids,

cutlery and straws, boba tea supplies and coffee drinks.

Extensive portfolio of disposable foodservice and specialty food and beverage products

We leverage our diversified global supplier network and domestic production capabilities to offer customers a wide selection of single-use disposable foodservice products and specialty food and beverage products with nearly 8,400 SKUs across a broad range of product categories.

Key offerings include food and take-out containers, bags, boxes, tableware, cups, lids, cutlery and straws, boba tea supplies and coffee drinks.

Our strong relationships with our suppliers allow us to offer customers products that preserve the high food quality and meet the unique needs of their business.

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Our commitment to pursuing environmental sustainability is exhibited in many aspects of our business.

We believe we are amongst the leading companies in the supply of eco-friendly disposal foodservice products in the United States.

We believe we are amongst the leading companies in the supply of eco-friendly disposable foodservice products in the United States.

Since our inception, we have made the conscious choice to never use Styrofoam in any of our products.

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We have seen continued growth in our eco-friendly product line, with sales from these products increasing to 34.1% of our total sales for the year ended December 31, 2025, compared to 33.6% in the previous year.

We placed a strategic focus on expanding our paper bag business in 2025, and started shipment on a newly-acquired paper bag contract with a chain account in the second half of the year, growing paper bags sales from $7.9 million for the year ended December 31, 2024 to $13.7 million for the year ended December 31, 2025.

Growing blue-chip customer base across various channels

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We have a successful track record of winning new customers and significantly growing wallet shares with our customers.

Our diverse and growing blue chip customer base includes well-known fast casual chains such as Applebee’s Neighborhood Grill + Bar, Chili’s Grill & Bar, PF Chang's China Bistro, Chipotle Mexican Grill, and Corner Bakery Cafe, fast food chains such as The Coffee Bean & Tea Leaf, El Pollo Loco, In-N-Out Burger, Jack in the Box, Panda Express, and Raising Cane’s Chicken Fingers.

Compared to 2020 prior to our IPO, we have grown our chain accounts by more than 10 folds with revenue up 33%.

We have also recently added certain prominent supermarket chains such as Albertsons and H-E-B in our customer base, as our efforts to expand into this section started to come to fruition.

As our capabilities, product offering and footprint expand, we aim to continue to focus on the growth in the supermarket sector and broaden our reach to national and regional airlines, entertainment venues, and other non-restaurant customers.

Our diverse and growing blue chip customer base includes well-known fast casual chains such as Applebee’s Neighborhood Grill + Bar, Chili’s Grill & Bar, PF Chang's China Bistro, Chipotle Mexican Grill, and Olive Garden, fast food chains such as The Coffee Bean & Tea Leaf, El Pollo Loco, In-N-Out Burger, Jack in the Box, Panda Express, and Raising Cane’s Chicken Fingers.

We have grown our revenue from chains and distributors to $370.6 million for the year ended December 31, 2025, with an increase of approximately 64.7% compared to the year ended December 31, 2020 prior to our Initial Public Offering (IPO).

Our growth is supported by continuous effort to add new customer accounts and to expand existing customer accounts.

For example, for one of our largest national chain accounts, we grew from less than $1.0 million on 5 SKUs for the year ended December 31, 2016, to approximately $12.6 million on more than 20 SKUs for the year ended December 31, 2025, including a paper bag contract signed with forecast annualized revenue of approximately $17.0 million.

We are looking into replicating the success on our paper bag business with our other customers.

In addition, we have also added more than 120 new accounts in the chain and distributor channel for the year ended December 31, 2025.

As our capabilities in product offering and footprint expand, we aim to continue to focus on the growth our paper bag business and eco-friendly products and broaden our reach to national and regional airlines, entertainment venues, and other non-restaurant customers.

Scaled distribution with diversified global sourcing and flexible domestic production capabilities

We leverage our diversified global supplier network to offer customers a wide selection of single-use disposable foodservice products.

We have significantly grown our inventory sourcing network from only a handful of vendors initially to nearly 150 active vendors by the end of 2025.

These supplier relationships allow us to offer custom-branded and custom-designed products with fast turnaround times and at competitive prices.

Over time, we have strategically reduced our reliance on suppliers in China for imported goods to approximately 20% of our global purchases, diversifying our sourcing to countries with more favorable trade conditions and minimal tariffs, such as Taiwan, which accounted for more than 50% of our global sourcing for the year ended December 31, 2024.

This approach has allowed us to improve the cost-efficiency in our supply chain.

We have significantly grown our inventory sourcing network from only a handful of vendors initially to over 140 active vendors by the end of 2024.

Against a backdrop of higher tariff, we have strategically and swiftly realigned our global supply chain during 2025.

We reduced purchases from China from approximately 22% of global sourcing during 2024 to approximately 15% in 2025, maintained purchases from Taiwan at approximately 50% of our global sourcing, and diversified sourcing to countries with more favorable trade conditions, including Malaysia and Vietnam, which in aggregate accounted for approximately 17% of our global sourcing in 2025 compared to 9% in 2024.

Additionally, we are actively exploring sourcing from other geographies to further enhance the resilience of our global supply chain.

Our capability to build and manage a nimble and adaptive global supplier chain has allowed us to continue to improve our cost efficiency and expand our margin.

Domestically, our California, Texas, and Hawaii facilities have a portion of operational capacity dedicated to manufacturing capabilities.

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We consider our increasingly sophisticated logistics capabilities and expanded distribution network to be an important core competency and key differentiator from our competitors.

Among the total of ten distribution centers, three were newly opened in the past 24 months located in Mesa, Arizona, Sugar Land, Texas, and Aurora, Illinois.

We are also in the process of setting up an additional warehouse in Chino, California to be fully operational by the second quarter of 2025, as described in Note 22 — Subsequent Events in the Notes to the Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K.

Further, we racked up over 50,000 square feet of additional space within existing warehouses over the past two years to allow for better management and fulfillment of products.

We own a fleet of 41 trucks (including some that are refrigerated to transport frozen food item), 44 trailers, 13 bobtails, and 47 chassis, and as of December 31, 2024, employed 40 drivers in our logistics division.

Our national distribution and logistics capacity allows us to provide efficient and cost-

effective distribution to customers and reduce reliance on third-party logistics providers.

Among the total of ten distribution centers, two were newly opened in the past 24 months located in Chino, California and Mesa, Arizona.

Further, we racked up additional space within existing warehouses to allow for better management and fulfillment of products.

We own a fleet of 40 trucks (including some

that are refrigerated to transport frozen food item), 46 trailers, 16 bobtails, and 47 chassis, and as of December 31, 2025, employed 41 drivers in our logistics division.

Our national distribution and logistics capacity allows us to provide efficient and cost-effective distribution to customers and reduce reliance on third-party logistics providers.

We intend to continue to enhance our distribution capabilities via opening of additional distribution centers in strategic locations across the U.S.

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Our co-founders, Alan Yu and Marvin Cheng, have worked together for over 20 years to aggressively drive growth across the business.

Daniel Quire joined us in 2018 and was appointed Chief Revenue Officer in 2023, helping to provide leadership to our sales term, lead our customer acquisition and engagement initiatives, and expand our market presence.

Daniel Quire joined us in 2018 and was appointed Chief Revenue Officer in 2023, helping to provide leadership to our sales team, lead our customer acquisition and engagement initiatives, and expand our market presence.

Our Chief Financial Officer, Jian Guo, joined us in 2022, bringing years of public company experience to bolster our finance and accounting functions.

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In recent years, we have committed to enhancing our operational efficiency and customer satisfaction by strategically opening new distribution centers near key metropolitan areas in the United States.

This initiative aims to optimize inventory distribution, reduce lead times for inter-warehouse transfers, expedite order fulfillment, and improved service reliability, all of which strengthen our competitive advantage.

This initiative aims to optimize inventory distribution, reduce lead times for inter-warehouse transfers, expedite order fulfillment, and improve service reliability, all of which strengthen our competitive advantage.

Continue to build our e-commerce distribution channel

We believe there is an opportunity to continue to significantly grow our higher margin e-commerce business and we intend to do so by continuing to make investments in people, distribution capabilities, marketing, and technology.

In 2023, we upgraded our company e-commerce platform, which not only enabled us to improve our storefront from an operational standpoint, but also allowed for the integration of multiple applications and extensions to enhance user experience.

In 2024, we expanded our online presence to TikTok, adding to our existing list of third-party storefronts which already included Amazon, Walmart, and eBay.

Our e-commerce platforms allow us to offer our entire range of products for online procurement and enable us to cross market other products to our customers.

We expanded our online presence to TikTok in 2024 and Sysco in 2025, adding to our existing list of third-party storefronts which already included Amazon, Walmart, and eBay.

Starting in 2025, we scaled back third-party fulfillment on e-commerce platforms, and focused on fulfilling ourselves, which allowed us to significantly enhance our online sales profitability.

Our e-commerce platforms enable us to offer our entire range of products for online procurement and to cross market other products to our customers.

These platforms also provide us with the opportunity to continue our expansion into the B2C market in addition to the B2B small retailer customers that we have traditionally served.

We have elevated our focus on servicing B2C market by sourcing products tailored for and geared toward these end users.

We also further expanded our e-commerce team and improved and scaled our online marketing efforts.

All of these initiatives allowed us to increase the number of online orders by approximately 48% in 2024 compared to prior year.

Our e-commerce channel also significantly outperformed all other channels in year-over-year revenue growth in 2024, and we believe the e-commerce channel will continue to be a key growth driver in our business.

Grow our base business with incremental revenue from existing customers

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We have historically experienced consistently high customer retention rates as a result of our product offerings and dedication to our customers.

For the year ended December 31, 2024, revenue from our top 10 customers, as measured by the amount of revenue in the current year, increased 6.6% year-over-year, as we continued to expand wallet share with existing customers.

Our major customer retention rate, defined as year-over-year retention of our top 100 customers, was 100%.

Our major customer retention rate, defined as year-over-year retention of our top 100 customers, was 99% from 2024 to 2025.

For the year ended December 31, 2025, revenue from our major customers increased 11% year-over-year, as we continued to expand wallet share with existing customers.

Expand our customer base via new capabilities, geographies, products, services, and end markets

We believe our addressable market is substantial in size and continues to grow as food delivery businesses like Grubhub, Uber Eats, DoorDash, and others expand the demand for take-out and at-home disposable foodservice products.

We plan to continue to add new experienced sales team members to broaden our reach, expand into new geographic areas, and continue to focus on customer engagement.

continue to add new experienced sales team members to broaden our reach, expand into new geographic areas, and continue to focus on customer engagement.

We are committed to continuously evaluating and expanding our product and service offerings to meet evolving customer needs and enter new markets.

For example, our strategic focus on penetrating the supermarket segment in 2024 yielded significant results, with the win of new supermarket business from customers such as Albertsons and H-E-B, which not only expanded our market reach but also provided valuable exposure to a large consumer base actively seeking convenient, sustainable, and often single-use food packaging solutions for use in their deli counters, prepared foods sections, bakery, and on-premise dining areas.

This success validates our capabilities and highlights the immense growth opportunity within supermarkets.

As we continue to build on this momentum, the supermarket segment will remain a key area of focus for ongoing expansion and development in the coming years.

For example, our strategic focus on our paper bag business in 2025 yielded significant results, with the win of a paper bag contract with one of our largest national chain accounts with forecast annualized revenue of approximately $17.0 million.

This success validates our capabilities to grow our business through the expansion of our products and services, and highlights the immense growth opportunity with our other customers.

As we continue to build on this momentum, the paper bag business will remain a key area of focus for ongoing expansion and development in the coming years.

We are also actively exploring opportunities to broaden our reach in additional sectors, including airlines, entertainment venues, and other non-traditional foodservice sectors.

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We have made solid strides towards expanding our distribution footprint and capabilities in the United States, which has enhanced our inventory management, improved customer service and positioned us for continued market penetration and growth.

In the past 24 months, we invested in the significant expansion of our distribution capabilities by adding over 232,000 square feet of distribution space through the opening of three new warehouses;

Mesa, Arizona in 2024 and Sugar Land, Texas and Aurora, Illinois in 2023.

We are currently in the process of setting up this location to be fully operational by the second quarter of 2025.

Additionally, we racked up additional areas in existing warehouses, with over 50,000 square feet of new racked space added in 2024 and 2023 combined.

In the past 24 months, we invested in the significant expansion of our distribution capabilities by adding over 230,000 square feet of distribution space through the opening of two new warehouses in Chino, California in 2025 and in Mesa, Arizona in 2024.

Additionally, we racked up additional areas in existing warehouses.

We look to continue the expansion of our distribution footprint and capabilities to strategically support our planned growth across the United States.

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Our Karat Earth® line features products primarily made from renewable resources that are commercially compostable.

We are dedicated to continuous investment in research and development to broaden and enhance this product line.

As of December 31, 2024, our portfolio of eco-friendly products has grown to over 550 SKUs, up from approximately 500 the previous year.

Looking forward, we remain focused on further expanding this segment, including the upcoming launch of a new line of recycled PET cups and lids, made with more than 25% recycled resin material.

Additionally, we have also seen continued growth in our eco-friendly product sales, which now represent 33.6% of total sales for the year ended December 31, 2024, up from 32.7% the previous year.

Through these initiatives, we aim to support our customers’ sustainability goals while continuing to drive growth in our eco-friendly product offerings, making this an essential focus for us in the coming years.

We are committed to continued investment in research and development to broaden and enhance this product line.

As of December 31, 2025, our portfolio of eco-friendly products has grown to over 580 SKUs, up from approximately 550 SKUs as of the prior year end.

Sales from eco-friendly products as a percentage of total sales increased from 33.6% for the year ended December 31, 2024 to 34.1% for the year ended December 31, 2025.

In 2025, we initiated a strategic emphasis on expanding our paper bag product offerings.

With shipments under this contract starting in the second half of 2025, we have grown our paper bags sales from $7.9 million for the year ended December 31, 2024 to $13.7 million for the year ended December 31, 2025.

We expect our paper bag business to significantly scale, and become one of the most significant growth drivers for our business in the next two to three years.

Through these initiatives, we aim to collaborate with our customers to progress towards achieving sustainability goals.

Pursue strategic acquisitions

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As a result, the industry is represented by a large number of companies and remains highly fragmented.

Similarly, end customers of the disposable foodservice products industry are equally diverse in composition.

Similarly, end customers of the disposable foodservice products industry are

equally diverse in composition.

The primary purchasers of our products include fast casual restaurants, fast food chains, family dining restaurants, specialty drink establishments like bubble tea and coffee shops, convenience stores, and supermarkets.

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In recent years, the surge in at-home dining and mobility-focused e-commerce has fueled rapid growth in food delivery and takeout services, transforming the foodservice landscape.

As consumer preferences have evolved, foodservice establishments have realized that the at-home dining experience hinges not just on food quality but also on the packaging that ensures freshness, presentation, and convenience.

Packaging plays an essential role in preserving the dining experience, with high-quality takeout containers, insulated bags, and other disposable products contributing significantly to customer satisfaction.

Data from the National Restaurant Association shows that operators are increasingly acknowledging the importance of off-premises dining and making it a strategic priority.

According to studies done by International Market Analysis Research and Consulting Group, the United States online food delivery market is expected to reach $68.6 billion by 2032.

Foodservice establishments are increasingly prioritizing innovative, sustainable, and customized packaging solutions, aimed to replicate the in-restaurant dining experience at home while meeting rising consumer expectations for convenience, presentation, and environmental responsibility.

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We have established a scaled and flexible distribution and logistics system, with distribution centers strategically located throughout the United States.

We offer multiple ordering channels, including telephone, email, electronic data interchange, Lollicup e-commerce store website and app, and storefronts on marketplaces such as Amazon, Walmart, eBay, and TikTok.

Our delivery options to customers range from courier package services to same-day delivery on our own fleet.

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Intellectual Property

Our intellectual property portfolio includes 12 active trademarks, including Lollicup, Karat, Karat Earth® and Total Clean, and five registered copyrights.

Our intellectual property portfolio includes 12 active trademarks, including Lollicup, Karat, Karat Earth® and Total Clean, and 5 registered copyrights.

Environmental, Social and Governance (ESG)

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Our commitment to practicing environmental sustainability is exhibited in almost every aspect of our business.

We are a pioneer and leader in the supply of eco-friendly disposal foodservice products in the United States.

We are a pioneer and leader in the supply of eco-friendly disposable foodservice products in the United States.

Since our inception, we made the conscious choice to never use Styrofoam in any of our products.

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A recent peer-reviewed global study conducted by the American Association for the Advancement of Sciences found that less than 10 percent of plastics is recycled, meaning the vast majority of plastic waste ends up in landfills or the environment.

Other studies indicated a large percentage of landfill waste in the United States is comprised of plastic containers and food-ware.

Other studies indicated a large percentage of landfill waste in the United States is comprised of plastic containers and food-

Such striking statistics have prompted many state and city governments to enact regulations to cut down on plastic pollution.

For example, in 2024, New Jersey introduced regulations focusing on increasing post-consumer recycled (PCR) content in packaging.

These mandates include gradual increases in PCR content for various materials, such as plastic beverage

bottles and rigid plastic containers, aligning with long-term sustainability goals.

For example, as of December 31, 2025, seven states — Maine, Oregon, Colorado, California, Minnesota, Maryland, and Washington — have enacted comprehensive Extended Producer Responsibility (EPR) packaging laws, requiring businesses to manage their packaging materials through end‑of‑life (the post‑consumer collection, sorting, recycling, composting, and final disposal of packaging).

In 2024, New Jersey introduced regulations focusing on increasing post-consumer recycled (PCR) content in packaging.

These mandates include gradual increases in PCR content for various materials, such as plastic beverage bottles and rigid plastic containers, aligning with long-term sustainability goals.

In 2023, both Rhode Island and Delaware passed bills that prohibited food service establishments from using polystyrene foam in their food packaging.

In 2022, California passed legislation banning Styrofoam starting January 1, 2025 and requiring all packaging in the state to be recyclable or compostable by 2032.

In 2024, California further enacted the legislation banning all plastic carry out bags at retail checkout starting January 1, 2026, requiring stores to offer only recycled-paper or compliant reusable bags instead.

A variety of individual cities have also passed their own complimentary ordinances to limit single-use plastic products.

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Through these efforts, we aim to support waste reduction, reduce reliance on non-renewable resources, and help customers achieve their sustainability goals while addressing broader environmental challenges.

Our eco-friendly products made up 33.6% of total sales during the year ended December 31, 2024 compared to 32.7% during the prior year.

We have seen continued growth in our eco-friendly products, with sales from these products increasing to 34.1% of our total sales for the year ended December 31, 2025, compared to 33.6% in the previous year.

As of December 31, 2025, we had over 580 SKUs of eco-friendly products that our customers could choose from, up from approximately 550 as of the prior year end.

We are actively working on launching a new line of recycled PET cups and lids, which are made with more than 25% of recycled resin material.

Our operations

In our manufacturing facilities in the United States, the production process involves intake of water, dischargement and recycling of waste as well as other disposal activities.

In our manufacturing facilities in the United States, the production process involves intake of water, discharge and recycling of waste as well as other disposal activities.

As a Company, we place strong emphasis on water conservation and reducing water pollution.

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By using recycled resin, we reduce plastic waste, lower our carbon footprint, and contribute to the broader shift toward more sustainable solutions.

Our warehouse departments have implemented the practice of reusing paper cardboard boxes and wooden pallets for inventory storage and shipments.

Our warehouses have implemented the practice of reusing paper cardboard boxes and wooden pallets for inventory storage and shipments.

We offer credits to certain customers that return and reuse wooden pallets.

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The utilization of trash compacting services has allowed us to minimize the frequency of waste pickups and also reduce landfill space.

We have installed LED bulbs in light fixtures within both the warehouse and office space that are more efficient than their traditional fluorescent counterparts, often with timers that automatically turn off lights after a period of time if no movement is detected.

We have installed LED bulbs in light fixtures within both the warehouse and office

space that are more efficient than their traditional fluorescent counterparts, often with timers that automatically turn off lights after a period of time if no movement is detected.

We have also programmed our HVAC units at some of our locations to run on predetermined schedules to reduce our overall power consumption.

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Additionally, we are transitioning our company fleet from being gas powered to those that run entirely on electricity.

To the extent possible, we have also switched over from single use batteries to rechargeable battery packs in our line up of tools and equipment.

Our Company as a whole has also made strides to reduce the need for paper and ink by embracing a more digital form of

paperwork retention.

To the extent possible, we have also switched over from single use batteries to rechargeable battery packs in our lineup of tools and equipment.

We have installed charger meters to monitor the efficiency of our forklift batteries.

This system allows us to optimize battery usage and is now eligible for quarterly credits through the California's Low Carbon Fuel Standard program ("LCFS program").

In addition, it provides real-time monitoring of all chargers, enabling better oversight and management of energy consumption.

Our Company as a whole has also made strides to reduce the need for paper and ink by embracing a more digital form of paperwork retention.

Through these various efforts, we play our part to reduce our carbon footprint and will continue to look into and implement further sustainable practices.

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• Mitigating risks associated with known hazards and conditions.

Diversity, Equity, and Inclusion (DEI)

Diversity, equity, and inclusion (DE&I)

Diversity, equity and inclusion ("DE&I") are critical underpinnings of our corporate values.

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Our engagement approach involves ongoing communication with our employees.

We strive to provide relevant

market updates to our team members as well as to share important information regarding our revenue trends, inventory status, and other financial and operating metrics as deemed necessary.

We strive to provide relevant market updates to our team members as well as to share important information regarding our revenue trends, inventory status, and other financial and operating metrics as deemed necessary.

At the same time, our employees are expected to act with integrity and objectivity and to always strive to enhance our reputation and performance.

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Female 33% 33% 40%

Other/Did not self-identify 1% — —

Hispanic 51% — —

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One of the goals of our recruitment strategy is to ensure we are aligning roles with compensation levels based on job responsibilities, market competitiveness, geographic location, strategic importance of roles, and other relevant factors.

Our compensation package includes a base salary and depending on the role, discretionary bonuses and equity compensation programs.

Our compensation package includes a base salary and equity compensation programs, depending on the role.

In January 2019, the Company’s Board of Directors adopted the 2019 Stock Incentive Plan (the “Plan”).

A total of 2,000,000 shares of common stock has been authorized and reserved for issuance under the Plan in the form of incentive or nonqualified stock options and stock awards.

A total of 2,000,000 shares of common stock have been authorized and reserved for issuance under the Plan in the form of incentive or nonqualified stock options and stock awards.

As of December 31, 2025, a total of 935,900 shares of common stock were awarded under the Plan.

Employees, directors, and consultants are eligible to receive stock options and stock awards under the Plan.

Additionally, we make matching contributions to to our employees' 401(k) retirement accounts to support their retirement goals.

Additionally, we make matching contributions to our employees' 401(k) retirement accounts to support their retirement goals.

We also offer our employees’ healthcare, wellness, paid sick leave, flexible paid time off, and other benefits to support their quality of life and enable them to thrive in the workplace.

All eligible full-time and part-time employees and their eligible dependents receive competitive health benefits.

We cover approximately 65% of total eligible healthcare costs for part and full-time employees for our approximately 329 participating employees as of December 31, 2024.

We cover approximately 65% of total eligible healthcare costs for part and full-time employees for our 360 participating employees as of December 31, 2025.

Learning and development

We believe that high performance is an outcome of a person’s ability to change, adapt, and grow their capabilities throughout their career.

We emphasize on-the-job learning that enables employees to meet the demands of challenging and changing work and focuses on reinforcing key principles that are designed to support employees' effectiveness in their current job and in their future development.

job and in their future development.

We provide technical and leadership training to employees, specifically our production and sales teams who work closely with our products and services.

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Yu and Cheng and the other shareholders of Lollicup (together, the “Lollicup Shareholders”) entered into a share exchange agreement and plan of reorganization whereby the Lollicup Shareholders exchanged their shares of common stock in Lollicup for an equal number of shares of common stock of the Company, resulting in Lollicup becoming a wholly-owned subsidiary of the Company.

In October 2025, we redomesticated Lollicup to the State of Texas.

Our principal executive and administrative offices are located at 6185 Kimball Avenue, Chino, CA 91708, and our telephone number is (626) 965-8882.

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For additional historical information about us, see Note 1 — Nature of Operations in the Notes to the Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K.

We are a “smaller reporting company” as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended, or (the "Exchange Act"), and have elected to take advantage of certain of the scaled disclosure available for smaller reporting companies.

We are an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”).

Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies.

We have elected to take advantage of this exemption from new or revised accounting standards and, therefore, will not be subject to the same new or revised accounting standards as public companies that are not emerging growth companies.

For so long as we are an emerging growth company, we are eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies.

These include, but are not limited to:

• Being permitted to present only two years of audited financial statements, in addition to any required unaudited interim financial statements, with correspondingly reduced “Management’s Discussion and Analysis of Financial Condition and Results of Operations” disclosure in this filing;

• Not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended (“Sarbanes-Oxley Act”) in the assessment of our internal control over financial reporting;

• Not being required to comply with any requirement that may be adopted by the Public Company Accounting Oversight Board (“PCAOB”) regarding mandatory audit firm rotation or a supplement to the auditors’ report providing additional information about the audit and the financial statements;

• Reduced disclosure obligations regarding executive compensation in our periodic reports, proxy statements and registration statements;

• Exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.

We will cease to be an emerging growth company on December 31, 2026, which represents the end of the fiscal year in which the fifth anniversary of the date of our IPO prospectus occurs.

We are also a “smaller reporting company,” as such term is defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

To the extent that we continue to qualify as a smaller reporting company after we cease to qualify as an emerging growth company, certain of the exemptions available to us as an emerging growth company may continue to be available to us as a smaller reporting company.

Available Information

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business