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Anthropic, PBC
Notes to Consolidated Financial Statements
(Continued)

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In May 2026, the Company entered into an agreement to invest $325 million in a newly formed entity 
that will help accelerate AI adoption across mid-sized companies. The Company is currently evaluating 
the impact of the accounting for this arrangement on its consolidated financial statements.

Other Matters

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In  January  2026,  the  Company  entered  into  a  lease  agreement  for  office  space  in  San  Francisco, 
California.  The  lease  has  a twelve-year  initial  term  contractually  commencing  in January  2027.  In 
March  2026,  the  lease  was  deemed  to  have  commenced  for  accounting  purposes  when  the  landlord 
made  the  leased  building  available  for  use  by  the  Company  to  begin  tenant  improvements.  The 
Company  recognized  an  operating  lease  right-of-use  asset  of $200  million  and  corresponding 
operating lease liability of $196 million.

In  January  2026,  the  Company  modified  all  stock  options  outstanding  for  which  the one-year  cliff 
vesting period had not yet been achieved by adjusting the cliff vesting period to be equal to six months. 
The incremental expense recognized as a result of these stock option modifications was not material.

A  portion  of  the  Company’s  revenue  is  derived  from  contracts  with  various  agencies  of  the  United 
States  Government  (“USG”).  On  February  27,  2026,  the  President  of  the  United  States  ordered  the 
USG to stop using the Company’s models and the U.S. Department of War designated the Company as 
a  Supply-Chain  Risk  to  National  Security  (the  “Risk  Designation”).  The  Company  may  experience 
material  revenue  losses  or  business  disruptions  attributable  to  these  events.  On  March  9,  2026,  the 
Company filed a complaint in the U.S. District Court for the Northern District of California challenging 
the  Risk  Designation  as  unlawful  and  simultaneously  filed  a  petition  for  review  in  the  U.S.  Court  of 
Appeals for the D.C. Circuit. The U.S. District Court for the Northern District of California has largely 
granted summary judgment in the Company’s favor, ruling that the Department of War’s actions were 
retaliatory acts meant to punish the Company for speech protected under the First Amendment to the 
United States Constitution and violated the Company’s rights under the Due Process Clause under the 
Fifth Amendment to the United States Constitution, and that the Secretary of War’s Risk Designation, 
particularly with respect to 10 U.S.C. § 3252, violated the Administrative Procedure Act because they 
were  in  excess  of  statutory  authority,  contrary  to  law,  and  arbitrary  and  capricious.  The  defendants 
have filed a notice of appeal of the preliminary injunction. The D.C. Circuit Court of Appeals, however, 
in  a  2-1  split  decision,  has  denied  the  Company’s  petition  for  review,  ruling  that  the  Department  of 
War’s  Risk  Designation  was  proper  under Federal Acquisition Supply Chain Security Act (“FASCSA”) 
Section 4713, and that the Company’s rights under the First Amendment and Due Process Clause of the 
Fifth Amendment were not violated. The Company is evaluating its next steps with respect to the D.C. 
Circuit’s decision.

17. Subsequent Events (Unaudited)

The Company has evaluated subsequent events for recognition and measurement purposes through October 26, 
2026, the date the unaudited interim consolidated financial statements were available to be issued.

Equity and Financing Transactions

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Subsequent to June 30, 2026, the Company’s board of directors approved grants of approximately 91 
million  RSUs  with  an  aggregate  grant  date  fair  value  of  $5.8  billion.  The  RSUs  are  subject  to  both 
service-based  and  performance-based  vesting  conditions.  The  service-based  condition  is  generally 
satisfied  quarterly  over  a  period  of  four  years,  with  a  cliff  vesting  period  of  six  months  applicable  to 
grants made to new hires, subject to the employee’s continuous service with the Company through each 
service-based vesting date. The performance-based vesting condition of the RSUs will be satisfied upon 
the effectiveness of the registration statement of which this prospectus forms a part.

In  September  2026,  the  Company  amended  and  restated  the  Credit  Agreement,  increasing  the 
revolving  commitments  from  $3.3  billion  to  $15.0  billion  and  extending  the  maturity  to  September 
2031.  The  amendment  also  increases  the  minimum  liquidity  covenant  from  $500  million  to  $5.0 
billion.

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