Company: TUTH
Filing Date: 2025-10-01
Form Type: 1-SA
Source: 0001683168-25-007356
Chunk: 19

Company: Standard Dental Labs Inc.
Filing Date: 2025-10-01
Form: 1-SA
Chunk 19
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0.10 per share. A
portion of the accrued interest totaling $104,572 remains payable to third-party holders as of June 30, 2025. The remainder of accrued
interest, attributable to related party James Brooks, is disclosed separately in Note 5. The increase in the of these notes during this
period are related to transfers from Mr. Brooks to third parties.

At issuance, a beneficial conversion
feature (BCF) was recognized on these notes and amortized over their respective terms. As all notes in this tranche exceeded their 12-month
maturity as of year-end 2024, the associated BCF has been fully amortized.

0% Convertible Notes: During the period ended
June 30, 2025, the Company issued $115,000 (2024 - $125,000) in zero-interest convertible notes. These notes are convertible into common
shares at fixed prices ranging from $0.02 to $0.10 per share and contain embedded BCFs. During the period the Company recognized a total
BCF of $52,374 related to all issuances, which was recorded as a debt discount and amortized over the 12-month term. No interest expense
was recorded on these notes due to the 0% coupon.

During the period ended June 30, 2025, holders converted $37,792 under these instruments,
resulting in the issuances of 1,889,612 common shares. Certain holders of $80,000 in these instruments have contested the validity of
these conversions and are seeking cancelation of the 5,074,150 shares issued to them on conversion and payment of the $80,000 in principal
plus interest.

The Company has applied consistent accounting treatment to all convertible promissory notes, recognizing any intrinsic
BCF at issuance and amortizing the related discount over the respective contractual terms.

| F-7 |

STANDARD DENTAL LABS INC.

(formerly Costas, Inc.)

Notes to the Condensed Interim Financial Statements

for the three and six months ended June 30, 2025 and 2024

(Unaudited – Expressed in United States dollars)

Summary of Outstanding Balances:

As of June
30, 2025, the Company had the following convertible note balances outstanding with third parties:

| Instrument           |     | Principal |           |     | Unamortized Discount (BCF) |         |   |     | Net Carrying Value