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Use of Estimates

Anthropic, PBC
Notes to Consolidated Financial Statements
(Continued)

The preparation of consolidated financial statements in conformity with GAAP requires management to make 
estimates  and  assumptions  that  affect  the  reported  amounts  of  assets  and  liabilities,  revenues  and  expenses, 
and  related  disclosures  of  contingent  assets  and  liabilities  in  the  consolidated  financial  statements  and 
accompanying  notes.  Actual  results  could  differ  materially  from  those  estimates.  Significant  items  subject  to 
such  estimates  and  assumptions  include  the  determination  of  the  fair  value  of  common  stock,  valuation  of 
deferred  tax  assets  and  the  related  valuation  allowance,  the  potential  outcome  of  uncertain  tax  positions  that 
have  been  recognized  in  the  consolidated  financial  statements  or  tax  returns,  valuation  of  the  simple 
agreements  for  future  equity  (“SAFEs”),  valuation  of  convertible  notes,  valuation  of  goodwill,  stock-based 
compensation,  the  assessment  of  useful  lives  of  long-lived  assets  and  intangible  assets,  contingencies,  the 
valuation of financial instruments, and incremental borrowing rates for operating and finance leases.

Concentrations of Risk

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally 
of cash and cash equivalents, restricted cash, accounts receivable, and short-term investments. The Company 
maintains  cash  with  financial  institutions  of  high  credit  quality  and  has  not  experienced  any  losses  on  such 
accounts and does not believe it is exposed to any unusual credit risk beyond the normal credit risk associated 
with  commercial  banking  relationships.  Deposits  held  with  these  financial  institutions  are  in  excess  of  the 
amount of Federal Deposit Insurance Corporation insured limits provided on such deposits. The Company has 
not experienced any losses related to these concentrations during the periods presented. The Company’s short-
term  investments  are  primarily  intended  to  facilitate  liquidity  and  capital  preservation  and  consist 
predominantly  of  highly  liquid  investment-grade  fixed-income  securities,  diversified  among  industries  and 
individual issuers. The Company’s investment policy is designed to limit exposure from any particular issuer or 
institution.

Significant Customers

The  table  below  sets  forth  concentrations  of  credit  risk  with  respect  to accounts  receivable  from  major 
customers that accounted for 10% or more of the Company’s total accounts receivable:

Customer A

Customer C

______________
*

Less than 10% of total

As of December 31,

2024

2025

*

*

13%

*

As of June 30,
2026

(unaudited)
13%

10%

The  table  below  sets  forth  concentrations  of  revenue  from  customers  that  accounted  for 10%  or  more  of  the 
Company’s total revenue:

Year Ended December 31,
2024

2023

2025

Six Months Ended June 30,

2025

2026

*

*

43%

11%

*

*

*

*

(unaudited)

12%

12%

*

*

*

18%

*

*

*

*

11%

*

Customer A

Customer B

Customer C

Customer D

______________
*

Less than 10% of total

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