Company: MRT
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036882
Chunk: 222

Company: Marti Technologies, Inc.
Filing Date: 2025-04-29
Form: 20-F
Item: Item 19
Chunk 222
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, 2024

(Amounts expressed in US$
unless otherwise stated.)

3 - 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND USE OF ESTIMATES (Continued)

3.15 Amortization
of debt discount and issuance costs

Long-term debt is initially recorded at its allocated
proceeds, net of issuance costs or discount. Debt issuance costs or discount, consisting of the fair value of any warrant or shares issued
at its issuance date and other issuance fees directly related to the debt, are offset against the initial carrying value of the debt and
are amortized to interest expense over the estimated life of the debt using the effective interest method.

3.16 Warrants

The Group accounts for issued warrants either
as a liability or equity in accordance with ASC 480-10, Accounting for Certain Financial Instruments with Characteristics of both Liabilities
and Equity (“ ASC 480-10”) or ASC 815-40, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled
in, a Group’s Own Stock (“ ASC 815-40”). Under ASC 480-10, warrants are considered a liability if they are mandatorily
redeemable and they require settlement in cash, other assets, or a variable number of shares. If warrants do not meet liability classification
under ASC 480-10, the Group considers the requirements of ASC 815-40 to determine whether the warrants should be classified as a liability
or as equity. Under ASC 815-40, contracts that may require settlement for cash are liabilities, regardless of the probability of the occurrence
of the triggering event, equity-classified warrants are accounted for at fair value on the issuance date with no changes in fair value
recognized after the issuance date, liability-

classified warrants are also accounted for at
fair value on the issuance date and the fair value is marked-to-market in each reporting period.

3.17 Inventories

Inventories consists of spare parts used for maintenance
and repair of the rental vehicles. The cost of inventories consists of all purchase costs, transformation costs and other costs which
are done to get the inventories to their current state and locations, Inventories are valued at the lower of cost based on a weighted
average cost method or net realizable value. The average cost of inventory consists of the price paid for spare parts plus freight from
manufacturers and any customs or duties incurred.

3.18 Customs
tariffs

Based on the regulations of the Turkish Ministry