v3.26.1
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,
20262025
Provision for income taxes$43,008 $82,059 
Effective income tax rate0.55 %0.68 %
The components of income/(loss) before provision for/(benefit from) income taxes are:
For the Year Ended
December 31,
20252024
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,
20252024
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 $90,896 
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the statutory tax rates and the effective tax rates for the years ended December 31, 2025 and 2024 is as follows:
For the Year Ended December 31,
20252024
Amount%Amount%
U.S. federal statutory income tax rate$(10,133,228)(21.00)%$(5,027,185)(21.00)%
Domestic Federal
Nontaxable and nondeductible items
Interest disallowed on convertible debt1,342,776 2.78 %938,724 3.88 %
Impairment of Goodwill865,814 1.79 %630,000 2.60 %
Change in fair value of option liability1,350,510 2.80 %(54,810)(0.23)%
SAFE Agreement FV Adjustment994,350 2.06 %19,950 0.08 %
Derivatives liability fair value adjustment2,460,990 5.10 %287,700 1.19 %
Stock Compensation Expense2,365,198 4.90 %63,844 0.26 %
Other permanent differences27,311 0.06 %24,372 0.10 %
Cross-border tax laws
Global intangible low-taxed income268,251 0.56 %969,392 4.01 %
Foreign-derived intangible income deduction(72,750)(0.15)%— — %
Change in valuation allowance286,132 0.59 %3,147,233 13.01 %
State income taxes, net of federal benefit and tax credits67,727 0.14 %10,005 0.04 %
Foreign tax effects
British Virgin Islands
Statutory income tax rate differential292,158 0.61 %(1,164,116)(4.81)%
Spain
Statutory income tax rate differential(25,648)(0.05)%(22,658)(0.09)%
Change in valuation allowance160,298 0.33 %141,615 0.59 %
Other foreign jurisdictions74,661 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,
20252024
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,
20252024
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,
20252024
Israel
$59,058 $33,173 
Other jurisdictions
$— $—