Company: MRT
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036882
Chunk: 225

Company: Marti Technologies, Inc.
Filing Date: 2025-04-29
Form: 20-F
Item: Item 19
Chunk 225
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 an identified asset and whether the lessee has the right to
control such asset in accordance with ASC 842. The Group determines the classification and measurement of its leases upon lease commencement.
The Group enters into certain agreements as a lessor and either leases or subleases the underlying asset in the agreement to customers.
The Group also enters into certain agreements as a lessee.

Lessor

The Group’s lease arrangements include vehicle
rentals to riders. Due to the short-term nature of these arrangements, the Group classifies these leases as operating leases. The Group
does not separate lease and non-lease components, such as roadside assistance provided to the lessee, in its lessor lease arrangements.
Lease payments are variable based on duration of ride and are recognized as revenue upon the completion of each related ride. Taxes or
other fees assessed by governmental authorities that are both imposed on and concurrent with each lease revenue-producing transaction
and collected by the Group from the lessee are excluded from the consideration in its lease arrangements. The Group mitigates residual
value risk of its leased assets by performing regular maintenance and repairs, as necessary, and through periodic reviews of asset depreciation
rates based on the Group’s ongoing assessment of present and estimated future market conditions.

Lessee

The Group’s leases include real estate property
to support its operations and vehicles that may be used for operations. The lease terms may include options to extend or terminate the
lease when it is reasonably certain that the Group will exercise such options.

The Group determines if an arrangement is or contains
a lease at contract inception. The Group recognizes a right-of-use (ROU) asset and a lease liability at the lease commencement date. The
lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date.

The Group determines if an arrangement is a lease
and for other than short term leases, classifies that lease as either an operating or finance lease at inception. Operating leases are
included in “ Operating lease right of use assets,” and “ Operating lease liabilities in the Consolidated Balance Sheets.

Key estimates and judgments include how the Group
determines (1) the discount rate it uses to discount the unpaid lease payments to present value, (2) lease term, and (3) lease payments.

Topic 842 requires a lessee to discount its unpaid
lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing
rate. Generally, the Group cannot determine the interest rate