Company: TUTH
Filing Date: 2025-10-01
Form Type: 1-SA
Source: 0001683168-25-007356
Chunk: 18

Company: Standard Dental Labs Inc.
Filing Date: 2025-10-01
Form: 1-SA
Chunk 18
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In 2025, the Company engaged Fastbend
Holdings Inc., a company controlled by CEO James Brooks, to provide monthly management consulting services. The agreement includes strategic
planning, operational support, and executive advisory functions for a fixed fee of $20,000 per month. During the three and six months
ended June 30, 2025, the Company incurred $60,000 (2024: $0) and $120,000 (2024: $0) in consulting fees which remain outstanding. Management
believes the terms are consistent with those in an arm’s length transaction.

| F-6 |

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)

During the six months ended June 30,
2025, Mr. Brooks assigned $42,500 (2024: $50,000) of the note to third parties who are not related parties. The assigned amounts reduced
his outstanding principal balance and increased the balance of 8% Convertible Notes to third parties.

After accounting for accrued interest, reimbursable
expenses, withdrawals, transfers, principal repayments, and monthly advisory fees, the outstanding principal balance of the convertible
note held by Mr. Brooks was $966,641 as of June 30, 2025 (2024: $924,037).

The remaining balance of the note
represents a potentially dilutive equity instrument; however, it was excluded from diluted earnings per share due to the Company’s
net loss position.

Note 6 – Convertible Promissory Notes – Third Party

The Company issued unsecured convertible
promissory notes to third-party investors under two primary tranches: (i) 8% interest-bearing notes and (ii) zero-interest notes with
a beneficial conversion feature (“BCF”). All instruments are convertible into the Company’s common stock at fixed conversion
prices. Share and per-share values presented are post-split unless otherwise noted.

8% Convertible Notes: The Company
issued a total of $430,900 in 8% convertible promissory notes primarily during 2022 and 2023. These notes carry an annual interest rate
of 8%, mature 12 months from issuance, and are convertible into common shares at fixed prices ranging from $0.02 to $