Company: TUTH
Filing Date: 2025-10-01
Form Type: 1-SA
Source: 0001683168-25-007356
Chunk: 17

Company: Standard Dental Labs Inc.
Filing Date: 2025-10-01
Form: 1-SA
Chunk 17
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erly 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)

Significant estimates used in these
financial statements include:

| · | The determination of useful                                                                                                     
 lives and recoverability of long-lived assets, including property and equipment                                                 |
| · | Valuation of convertible notes and associated                                                                                   
 beneficial conversion features                                                                                                  |
| · | Classification of expenses                                                                                                      
 associated with the Company’s services agreement (e.g., determining amounts to be included in cost of goods sold versus selling 
 and marketing expense)                                                                                                          |
| · | The application of recapitalization                                                                                             
 accounting in connection with the Prime Dental transaction and the corresponding equity structure restatement                   |
| · | Assessment of contingencies and going concern                                                                                   
 uncertainties                                                                                                                   |

Estimates are reviewed on an ongoing
basis and adjusted as necessary in the period they become known.

Note 4 – Material Accounting Policy Information

The accounting policies applied
in the preparation of these financial statements are consistent with those applied and disclosed in the notes to the Annual Financial
Statements.

Note 5 – Related Party Transactions

On December 23, 2021, the Company
issued an 8% Convertible Promissory Note to Mr. James Brooks in the principal amount of $1,171,727. The note bears interest at 8% per
annum and initially matured on December 31, 2022. Mr. Brooks has extended the maturity date annually, and the note now matures on December
31, 2025.

The note is convertible into common
shares of the Company at a price of $0.02 per share (post-split). A full beneficial conversion feature equal to the face value of the
note was recognized and amortized over the original 12-month term.

The balance of the note is reconciled periodically,
considering (i) interest accrued on the outstanding principal, (ii) reimbursable business expenses paid personally by Mr. Brooks, (iii)
withdrawals made by Mr. Brooks, (iv) any transfers from Mr. Brooks’ balance to third parties, and (v) monthly management consulting
services that started in 2025. Withdrawals and transfers reduce the amount owed under the note. Any excess or shortfall arising from
timing differences among accrued interest, expenses, withdrawals, and transfers is reflected as a related party payable or receivable