Dental laboratory integration platform SDL: revenue of approximately RMB 2.31 million in the first half of 2026, up 109.87% year-on-year

Revenue up 109.87% year-over-year / Net loss narrowed 5.15% year-over-year / Completed acquisition of BRLIT Dental Laboratory

DentalGoodNews｜Dental laboratory consolidation platform Standard Dental Labs Inc. (OTCQB: TUTH, hereinafter referred to as "SDL") recently released its semi-annual report for the period ended June 30, 2026. During the reporting period, the company completed the acquisition of the operating assets of Florida-based BRLIT Dental Laboratory, achieving operating revenue of US$342,600 (approximately RMB 2.3097 million), an increase of 109.87% from US$163,300 (approximately RMB 1.1006 million) in the same period last year, with net loss narrowing 5.15% year-over-year; cost of revenue increased from US$84,800 (approximately RMB 572,000) to US$138,900 (approximately RMB 936,400), mainly due to higher material costs driven by increased production volume; gross profit increased from US$78,400 (approximately RMB 528,600) to US$203,700 (approximately RMB 1.3733 million), with Gross Margin rising from 48.03% to 59.46%.

On the expense side, selling and marketing expenses increased from US$5,376 (approximately RMB 36,200) to US$56,900 (approximately RMB 383,400); general and administrative expenses increased from US$42,600 (approximately RMB 287,100) to US$378,500 (approximately RMB 2.5518 million); professional service fees decreased from US$400,200 (approximately RMB 2.6981 million) to US$67,100 (approximately RMB 452,600); total operating expenses increased from US$458,500 (approximately RMB 3.0905 million) to US$522,300 (approximately RMB 3.5209 million), with operating loss correspondingly narrowing from US$380,000 (approximately RMB 2.5619 million) to US$318,600 (approximately RMB 2.1476 million). After deducting interest expenses and other expenditures, net loss decreased from US$424,300 (approximately RMB 2.8606 million) to US$402,500 (approximately RMB 2.7134 million), narrowing 5.15% year-over-year; basic and diluted net loss per share was US$0.011, compared with US$0.014 in the same period last year.

Regarding M&A, the company completed the acquisition of the operating assets of BRLIT Dental Laboratory, Inc. on May 6, 2026, with total consideration of US$900,000 (approximately RMB 6.0670 million), of which US$300,000 (approximately RMB 2.0223 million) in cash was paid in two installments: US$150,000 (approximately RMB 1.0112 million) at closing, and another US$150,000 (approximately RMB 1.0112 million) payable 180 days after closing, subject to the target business maintaining at least 80% of historical revenue; the remaining consideration was paid with 1.2 million shares of common stock valued at US$600,000 (approximately RMB 4.0447 million), with shares released from escrow over eight quarters, and subject to a twelve-month, 20% indemnity holdback provision, as well as a one-time consideration adjustment mechanism based on revenue targets for the twelve months following closing.

Management disclosed that post-closing average revenue fell below the 80% threshold, which may trigger a consideration adjustment. Following the acquisition, the company retained approximately 90% of existing customer relationships, with purchase price allocation recognizing goodwill of US$622,100 (approximately RMB 4.1934 million), fixed assets of US$77,900 (approximately RMB 525,400), and intangible assets of US$200,000 (approximately RMB 1.3482 million). In addition, the company signed an asset purchase agreement in December 2025 to acquire the operating assets of Sheen Dental Laboratory in Dunedin, Florida, with specific follow-up progress not yet disclosed.

Source: SDL Interim Report for the six months ended June 30, 2026

Regarding liquidity, as of June 30, the company held cash of US$13,200 (approximately RMB 88,800), compared with US$2,266 (approximately RMB 15,300) at the end of last year, primarily supporting working capital through US$605,000 (approximately RMB 4.0784 million) in convertible note financing, compared with US$115,000 (approximately RMB 775,200) in the same period last year; cash used in operating activities was US$437,200 (approximately RMB 2.9474 million), compared with US$49,100 (approximately RMB 331,300) in the same period last year, while investing activities used US$156,900 (approximately RMB 1.0575 million) in cash for the BRLIT acquisition.

The company stated it will continue to expand its dental laboratory platform through organic growth and opportunistic acquisitions, and expects manufacturing efficiency to improve and unit costs to potentially decline as production volume increases, though this judgment constitutes a forward-looking statement and actual results may be affected by factors such as disputes over convertible note conversions. In addition, the company noted in the report that the semi-annual financial data disclosed herein is unaudited, and first-half operating results do not necessarily represent expected operating results for the full year 2026.