Company: MRT
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036882
Chunk: 117

Company: Marti Technologies, Inc.
Filing Date: 2025-04-29
Form: 20-F
Item: Item 5
Chunk 117
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 fiscal year 2024.

Gross Profit

Our gross profit increased by $1.2 million from
$(4.1) million during the year ended December 31, 2023 to $(2.9) million during the year ended December 31, 2024. While revenue was $1.4
million lower, due to our profitability enhancing measures, including increasing the lifetime of our vehicles beyond the anticipated depreciation
schedule, ceasing operations in lower performing cities, reallocating vehicles to higher performing cities, and reducing the number of
service vans and motorcycles for field operations, our gross profit increased.

Research and Development

Our research and developments expense was unchanged
at $2.0 million during the year ended December 31, 2023 and 2024.

General and Administrative

Our general and administrative expense increased
by $34.1 million, or 225.5%, from $15.1 million during the year ended December 31, 2023, to $49.2 million during the year ended December
31, 2024. Share-based compensation expense increased general and administrative expenses by $37.2 million. Other general and
administrative expenses, excluding personnel expenses decreased by $1.1 million, or 8%, from $13.1 million during the year ended December
31, 2023, to $12.1 million during the year ended December 31, 2024 attributable to decrease in consulting and legal expense driven primarily
by team efficiencies and streamlining public company costs in our second year as a public company.

Selling and Marketing

Our selling and marketing expense increased by
$2.0 million, or 27.2%, from $7.3 million during the year ended December 31, 2023, to $9.3 million during the year ended December 31,
2024, primarily attributable to rider and driver acquisition and retention expenses, and advertising consulting expenses. Rider and driver
acquisition and retention expenses increased by $1.2 million, or 229.9%, from $0.5 million during the year ended December 31, 2023 to
$1.8 million during the year ended December 31, 2024. This produced a 1.16 million, or 233.5% increase in unique ride-hailing riders and a 156 thousand,
or 145.9% increase in registered drivers in 2024. Advertising consulting expense increased by $0.8 million, or