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Anthropic, PBC
Notes to Consolidated Financial Statements

1. Description of Business and Summary of Significant Accounting Policies

Anthropic,  PBC  (the  “Company”)  is  a  public  benefit  corporation  (“PBC”)  incorporated  under  Delaware  law  in 
January 2021. The Company develops and maintains advanced artificial intelligence (“AI”) models and provides 
its  intelligence  service  through  its  platform  and  applications  to  customers.  The  Company’s  public  benefit 
purpose  is  to  responsibly  develop  and  maintain  advanced  AI  for  the  long-term  benefit  of  humanity.  The 
Company is headquartered in San Francisco, California.

Basis of Presentation

The  accompanying  consolidated  financial  statements  have  been  prepared  in  conformity  with  accounting 
principles generally accepted in the United States of America (“GAAP”). The Company consolidates its wholly 
owned  subsidiaries  over  which  it  exercises  control,  as  well  as  variable  interest  entities  (“VIEs”)  where  the 
Company  is  deemed  to  be  the  primary  beneficiary.  All  intercompany  balances  and  transactions  between 
consolidated entities have been eliminated in consolidation.

Change in Presentation and Reclassification of Prior Periods

Certain  amounts  reported  in  the  Company’s  prior  period  consolidated  financial  statements  have  been 
reclassified  to  conform  to  the  current  period  presentation.  During  the  year  ended  December  31,  2025,  the 
Company  changed  its  presentation  of  operating  expenses  from  a  functional  classification  under  which  cost  of 
revenue,  gross  profit  (loss),  research  and  development,  sales  and  marketing,  and  general  and  administrative 
were  presented  as  separate  line  items,  to  a  classification  based  on  the  nature  of  expenses.  As  a  result  of  this 
change in presentation, cost of revenue, gross profit (loss), research and development, sales and marketing, and 
general  and  administrative  are  no  longer  presented  as  separate  line  items  in  the  consolidated  statements  of 
operations.

Under  the  new  presentation,  expenses  are  presented  by  major  categories,  including  compute  and 
infrastructure;  personnel;  sales,  marketing,  and  partnerships;  Bartz  settlement;  and  other  operating  and 
administrative.  In  addition,  the  Company  combined  certain  captions  on  its  consolidated  balance  sheets  and 
consolidated statements of cash flows. These reclassifications and certain other prior period amounts have been 
recast  for  all  prior  periods  presented  to  conform  to  the  current  period  presentation.  These  reclassifications 
affect presentation only and did not impact total assets, total liabilities, total stockholders’ equity (deficit), total 
operating loss, net loss, or net cash provided by (used in) operating, investing, or financing activities.

Unaudited Interim Consolidated Financial Information

The  accompanying  interim  consolidated  balance  sheet  as  of  June  30,  2026  and  the  interim  consolidated 
statements of operations, comprehensive loss, redeemable convertible preferred stock and stockholders’ deficit, 
and  cash  flows  for  the  six  months  ended  June  30,  2025  and  2026  and  the  related  notes  to  such  interim 
consolidated financial statements are unaudited. These unaudited interim consolidated financial statements are 
presented in accordance with the rules and regulations of the U.S. Securities and Exchange Commission and do 
not  include  all  disclosures  normally  required  in  annual  consolidated  financial  statements  prepared  in 
accordance  with GAAP.  In  management’s  opinion,  the  unaudited  interim  consolidated  financial  statements 
have  been  prepared  on  the  same  basis  as  the  annual  consolidated  financial  statements and  reflect  all  normal 
and recurring adjustments necessary for the fair statement of the Company’s financial position as of June 30, 
2026 and the Company’s consolidated results of operations and cash flows for the six months ended June 30, 
2025 and 2026. The results of operations for the six months ended June 30, 2026 are not necessarily indicative 
of the results to be expected for the full year or any other future interim or annual period.

Stock Split

On  September 17, 2026, the Company effected a 10-for-1 stock split of its authorized, issued, and outstanding 
shares of Class A common stock and Class N common stock. The conversion rate of the Company’s redeemable 
convertible  preferred  stock  was  proportionately  adjusted  to  factor  in  the  stock  split.  On  the  same  date,  the 
Company also effected a 1-for-1,000 reverse stock split of its authorized and issued shares of Class T common 
stock. All share and per share information has been retroactively adjusted to reflect the stock split and reverse 
stock split for all periods presented.

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