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Table of Contents

Anthropic, PBC
Notes to Consolidated Financial Statements
(Continued)

Assets:

Cash equivalents:

Money market funds

Commercial paper

U.S. Treasury and agency securities

Corporate debt securities

Municipal securities

Short-term investments:

Commercial paper

U.S. Treasury and agency securities

Corporate debt securities

Other assets:

Warrant rights

Note purchase agreements

Total fair value assets

Liabilities:

Level 1

Level 2

Level 3

Total

As of June 30, 2026

(unaudited)

$

108,603 $

— $

— $

108,603

—

—

—

—

—

—

—

—

—

18

264

4

8

1,589

14,785

2,888

—

—

—

—

—

—

—

—

—

1,069

2,405

18

264

4

8

1,589

14,785

2,888

1,069

2,405

$

108,603 $

19,556 $

3,474 $

131,633

Accounts payable, accrued expenses, and 
other current liabilities:
Holdback liability(3)

Convertible notes(1)

Total fair value liabilities

$

$

— $

—

— $

— $

—

58 $

108,566

— $

108,624 $

58

108,566

108,624

______________
(1) Recorded at fair value with changes in fair value recorded in earnings due to the election of the fair value option of accounting 

for financial instruments. Refer to Note 9 for further information.

(2) Refer to Note 10 for further information.
(3) Refer to Note 15 for further information.

During  the  years  ended December  31,  2024  and 2025  and  the  six  months  ended  June  30,  2025  and  2026 
(unaudited), the Company had no transfers between levels of the fair value hierarchy of its assets measured at 
fair value.

The  Company  measures  cash  equivalents  and short-term  investments  at  fair  value.  Level  1  instrument 
valuations are based on quoted market prices of the identical underlying security. Level 2 instrument valuations 
are  obtained  from  readily  available  pricing  sources  for  comparable  instruments,  identical  instruments  in  less 
active markets, or models using market observable inputs.

During  the  year  ended December  31,  2025,  the  Company  entered  into  a  contract  to  receive  warrant  rights  to 
acquire common shares of a privately-held company as consideration under an agreement entered into but not 
yet  commenced.  The  warrant  rights  are  freestanding  financial  instruments  that  meet  the  definition  of  a 
derivative  as  they  contain  a  net  settlement  feature.  The  warrants  have  not  been  designated  as  hedging 
instruments  and  will  be  granted  and  recognized  as  lease  incentives  upon  commencement  of  the  related 
arrangements and recognized as a reduction of the related ROU assets. The Company estimated the fair value of 
the warrant rights using a probability-weighted expected return method. In applying this method, the Company 
utilized  Level  3  valuation  inputs  based  on  information  available,  including  terms  and  features  of  the  warrant 
rights  and  other  outstanding  classes  of  the  issuer’s  equity  securities,  observable  transactions  in  the  issuer’s 
securities such as its most recent financing round, estimates of equity volatility, and expected time to a liquidity 
event.  The  initial  fair  value  of  the  warrant  rights  was  recognized  as  a  derivative  asset  classified  within  other 
assets  on  the  consolidated  balance  sheets,  with  a  corresponding  deferred  liability  classified  within  other 
noncurrent liabilities.

F-30