Company: MRT
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036882
Chunk: 120

Company: Marti Technologies, Inc.
Filing Date: 2025-04-29
Form: 20-F
Item: Item 5
Chunk 120
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asing operations in 9 cities in 2023. We also reduced our number of vans and
motorcycles for field operations in fiscal year 2023.

Gross Profit

Our gross profit decreased by $2.0 million from
$(2.1) million during the year ended December 31, 2022 to $(4.1) million during the year ended December 31, 2023, primarily attributable
to decreasing revenue, with an effect of $5.0 million, and despite the decreasing effect of revenue, due to our several profitability
enhancing measures, ceasing operations in lower performing cities and reallocating vehicles to higher performing cities, reducing our
number of vans and motorcycles for field operations supported our gross profit.

General and Administrative

Our general and administrative expense increased
by $6.1 million, or 67.4%, from $9.0 million during the year ended December 31, 2022 to $15.1 million during the year ended December 31,
2023, primarily attributable to consulting and legal expenses related to our public listing, and personnel expenses. Consulting and legal
expenses increased by $3.0 million, or 225.6%, from $1.3 million during the year ended December 31, 2022 to $4.3 million during the year
ended December 31, 2023. Personnel expenses increased for the same period by $2.4 million, or 40.9%, from $5.9 million to $8.3 million
primarily attributable to new management personnel joining the Company in the run up to and following the public listing, and salary adjustments
due to local inflation exceeding currency depreciation.

Selling and Marketing

Our selling and marketing expense increased by
$5.7 million, or 346.4%, from $1.6 million during the year ended December 31, 2022 to $7.3 million during the year ended December 31,
2023, primarily attributable to advertising consulting expense and social media expense. Advertising consulting expense increased by $2.3
million from $0.2 million during the year ended December 31, 2022 to $2.5 million during the year ended December 31, 2023 primarily attributable
to increasing indoor and outdoor marketing and promotion activities of ride-hailing services. Social media expense increased by $1.4 million,
or 133.6%, from $1.0 million during the year ended December 31,