Company: MRT
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036882
Chunk: 219

Company: Marti Technologies, Inc.
Filing Date: 2025-04-29
Form: 20-F
Item: Item 19
Chunk 219
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 codes. The value of those
credits is recorded as reduction of revenues when the credits are used by customers.

F-12

MARTI TECHNOLOGIES, INC. AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2024

(Amounts expressed in US$
unless otherwise stated.)

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

3.5 Revenue
recognition (continued)

Rider incentive
programs

The Group has several rider incentive programs,
which are offered to encourage rider activity on the Marti APP. Generally, the rider incentive programs are as follows:

Rider referral program

Under the rider referral program, both the referring
rider and the referred new rider earn referral coupons when the referred rider completes their first ride on the Marti APP. The Group
records the incentive as a liability at the time the incentive is earned by the referred and the referrer with the corresponding charges
recorded as sales and marketing expense. Referral coupons typically expire within one month, The Group estimates breakage based on historical
data.

Call center incentive coupons

Under the call center incentive coupons, when
the rider experiences a problem such as a vehicle malfunction during the ride, and calls the call center of Marti, the call center supervisor
can issue a coupon to the rider. Coupons typically expire within one year. The Group estimates breakage based on historical data.

New business development coupons

The Group experimentally launches new products
and services to continue its growth into adjacent, tech-enabled urban transportation services, introducing new forms of environmentally
sustainable mobility services by leveraging its existing user base. It uses coupons to introduce and promote these new businesses and
accounts for them as marketing expenses for new business development.

Driver subscription package

The Group launched a new product namely “
driver subscription package
” which enables riders to purchase the Marti rides in advance by daily or weekly. Revenue from the purchase
of these packages is recognized over the subscription period.

3.6 Deferred
revenue

Deferred revenue consists of prepaid coupons to
customers and wallet balances which allow customers to add funds upfront. These are short-term payables to customers generated by pre-payments
for future rides. The Group does not record any significant financing component given that the customer paid for the services in advance,
and the timing of the transfer of those services is at the discretion of the customer though the