Company: TUTH
Filing Date: 2025-10-01
Form Type: 1-SA
Source: 0001683168-25-007356
Chunk: 6

Company: Standard Dental Labs Inc.
Filing Date: 2025-10-01
Form: 1-SA
Chunk 6
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 apply similar strategies to what has been learned from other consolidations.

The Company is open to acquiring additional independent
dental laboratories that are looking to exit the market. However, we do not currently have any plans or strategies in place to identify
potential acquisition targets. We are primarily focused on growing the existing business organically and believe that, in so doing, we
will be able to identify and uncover opportunities for potential acquisitions.

The Company operates day-to-day as a full-service
dental lab. With more than 50 dental clinics as clients, we produce roughly 500 dental prosthetics each month. As per industry standard,
we do not have any definitive agreements in place with these dental clinics. The items we manufacture and produce are shipped using standard
carriers.

Previously, the Company has engaged the labor
and manufacturing services of Smile Dental as a contract manufacturer. On July 1, 2025, the Company and Smile Dental mutually agreed to
the termination of the subcontracting agreement. The Company is now managing its own lab facility and is leasing the building and property.
Manufacturing of dental prosthetics is now performed by Company employed technicians and client relationships are managed directly by
Standard Dental Labs. Management expects, based on operations to date, that costs related to operations will remain approximately the
same as under the subcontracting agreement and expects that costs will decrease as the Company grows the size and number of labs it operates,
due to economies of scale.

Our goal is to open a large and modern facility
in Orlando, Florida to accommodate 75 full-time employees, including dental lab technicians. We have not undertaken specific steps at
this time for this facility and would not anticipate doing so until we have acquired at least 3 additional dental labs.

We sell our dental lab products and market these
products to our clients using our acquired tradename Prime Dental Lab LLC and compensate Smile Dental for contract services provided.
Smile Dental in turn reimburses the company for the use of our acquired dental lab equipment. In the past two fiscal years ended December
31, 2024 and 2023, we have compensated Smile Dental $98,642 and $118,677 respectively for services under their contract.

The 500 orders that are delivered each month are
completed by the contracted dental lab techs. With 60+ techs working in the new facility, we expect tech productivity to factor on par
or better than current levels due to improved support technologies and equipment in our new facility.

Results of Operations for our Six Month Periods Ended