When Anthropic's notes convert to equity, the liability no longer rises with its stock price, removing the associated net-income decrease and allowing the financial statements to tie.

“... which everyone would say is, is a good thing. And as those notes convert to equity, those go away because you no longer have this dynamic of your liability going up as your stock price goes up, which means your net income has to go down over here, so, you know, all the financial statements tick and tie.”