INCOME TAXES - SECURITIZE, INC. AND SUBSIDIARIES (Tables) - Securitize, Inc. and Subsidiaries

3 Months Ended

Mar. 31, 2026

Income Taxes [Line Items]

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes and the effective income tax rates were as follows:

	Three Months ended March 31,
	2026			2025
Provision for income taxes	$	43,008		$	82,059
Effective income tax rate	0.55		%	0.68		%

The components of income/(loss) before provision for/(benefit from) income taxes are:

	For the Year Ended December 31,
	2025		2024
Domestic	$	(46,135,563)	$	(28,802,994)
Foreign	(2,116,657)		4,606,222
Total income/(loss) before provision for/(benefit from) income taxes	$	(48,252,220)	$	(24,196,772)

The components of the provision/(benefit) for income taxes are:

	For the Year Ended December 31,
	2025		2024
Current
Federal	$	115,909	$	—
State	27,538		—
Foreign	59,058		33,173
Total current provision for income taxes	$	202,505	$	33,173
Deferred
Federal	$	52,170	$	26,971
State	69,875		30,752
Foreign	—		—
Total deferred provision for income taxes	122,045		57,723
Total provision for income taxes	$	324,550	$	90,896

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the statutory tax rates and the effective tax rates for the years ended December 31, 2025 and 2024 is as follows:

	For the Year Ended December 31,
	2025				2024
	Amount		%		Amount		%
U.S. federal statutory income tax rate	$	(10,133,228)	(21.00)	%	$	(5,027,185)	(21.00)	%
Domestic Federal
Nontaxable and nondeductible items
Interest disallowed on convertible debt	1,342,776		2.78	%	938,724		3.88	%
Impairment of Goodwill	865,814		1.79	%	630,000		2.60	%
Change in fair value of option liability	1,350,510		2.80	%	(54,810)		(0.23)	%
SAFE Agreement FV Adjustment	994,350		2.06	%	19,950		0.08	%
Derivatives liability fair value adjustment	2,460,990		5.10	%	287,700		1.19	%
Stock Compensation Expense	2,365,198		4.90	%	63,844		0.26	%
Other permanent differences	27,311		0.06	%	24,372		0.10	%
Cross-border tax laws
Global intangible low-taxed income	268,251		0.56	%	969,392		4.01	%
Foreign-derived intangible income deduction	(72,750)		(0.15)	%	—		—	%
Change in valuation allowance	286,132		0.59	%	3,147,233		13.01	%
State income taxes, net of federal benefit and tax credits	67,727		0.14	%	10,005		0.04	%
Foreign tax effects
British Virgin Islands
Statutory income tax rate differential	292,158		0.61	%	(1,164,116)		(4.81)	%
Spain
Statutory income tax rate differential	(25,648)		(0.05)	%	(22,658)		(0.09)	%
Change in valuation allowance	160,298		0.33	%	141,615		0.59	%
Other foreign jurisdictions	74,661		0.15	%	126,830		0.52	%
Total	$	324,550	0.67	%	$	90,896	0.15	%

Significant components of the Company’s net deferred tax assets and liabilities as of December 31, 2025 and 2024 are as follows:

	For the Year Ended December 31,
	2025		2024
Deferred tax assets
Net operating losses	$	20,730,569	$	25,307,036
Capitalized R&D expenses	3,420,867		2,882,250
Capital loss carryforward	2,656,192		188,164
Accruals and reserves	541,238		636,378
Fixed assets	22,502		13,210
Net unrealized losses	1,143,956		—
Other	224,743		178,387
Gross deferred tax asset	28,740,067		29,205,425
Valuation allowance	(28,650,505)		(28,927,292)
Net deferred tax asset	$	89,562	$	278,133
Deferred tax liabilities
Other	$	(99,179)	$	(142,650)
Net unrealized gains	—		(76,144)
Intangible assets	(254,017)		(200,928)
Deferred tax liabilities	(353,196)		(419,722)
Net deferred tax liabilities	$	(263,634)	$	(141,589)

Schedule of Cash Flow, Supplemental Disclosures

The income taxes paid, net of refunds received, for the year ended December 31, 2025 is as follows:

	For the Year Ended December 31,
	2025		2024
Federal (U.S.)	$	—	$	—
State (U.S.)	—		—
Foreign (total)	59,058		33,173
Total	$	59,058	$	33,173

A reconciliation of the income taxes paid, net of refunds received, by jurisdiction for the year ended December 31, 2025 is as follows:

	For the Year Ended December 31,
	2025		2024
Israel	$	59,058	$	33,173
Other jurisdictions	$	—	$	—