ORLANDO, FL / ACCESSWIRE / January 31, 2023 / Costas, Inc. (OTC PINK:CSSI) ("CSSI" or "the Company"), doing business as Standard Dental Labs Inc., reviews 2022 Company milestones in the year following the December 2021 appointment of CEO and controlling shareholder, Mr. James Brooks.
Just over two months after assuming control of CSSI, in March 2022, the Company acquired certain assets of the common control entity, Standard Dental Labs (SDL). SDL's business plan was to acquire existing dental labs in the private sector, and then consolidate those labs regionally into one larger facility. The Company acquired the commercialization-ready business model, along with other IP including tradenames, logos and website.
"Industry consolidation creates economies of scale, and that can make the difference between survival and flourishing in this industry," said Brooks, CSSI Chief Executive Officer.
The purchase of select assets of SDL closed in May of 2022, solidifying the Company's new business focus on the dental lab industry. Concurrent with the closing of the SDL acquisition, the Company's mandate became the purchase of cash-flowing and profitable dental lab businesses. The dental lab industry is estimated to be a $10B market in the US alone in 2022 (source: Grandview Research, Aug. 2021), and is growing steadily.
The business model acquired from SDL included developed branding, and a detailed business plan to facilitate the acquisition of small to medium-sized dental labs, of which there are thousands in the United States. Similar models have been extensively used in the medical and dental clinic industries over the past 15 years, but dental laboratories themselves remain highly fragmented.
Also in 2022, the Company established its headquarters in Orlando, Florida, leading to our August 2022 acquisition of Prime Dental Lab, the first of what the Company hopes will be many such acquisitions in the area. The acquisition of Prime Dental Lab resulted in the Company's first reported income in 20 years, and as the Company's plan is to continue acquiring similar labs, the Company expect to see incrementally increasing revenue with each new lab acquisition during 2023 and beyond.
In addition to reporting the Company's first revenue in Q3 2022, in Q4 the Company engaged an independent registered public accounting firm, and subsequently filed a registration statement on Form S-1 with the Securities and Exchange Commission in December 2022. Public transparency is a cornerstone of our development plan, and will assist the Company as it takes steps to raise additional capital in 2023 to acquire additional revenue generating dental labs in the U.S.
Our forward-looking plans include the purchase of up to 20 labs within the 2023 calendar year, while planning to consolidate these labs into one large, owned and operated facility in Orlando, Florida, where the Company is now headquartered. Management focus will be on additional lab acquisitions each quarter on a case-by-case basis as the Company strives to achieve our 2023 goals.
The Company will need a strong team to achieve its goals, and is currently in the process of interviewing key candidates to expand management and board, with the goal of an independent board of directors during fiscal 2023. Top of mind is the retention of a strong management team, including a Chief Financial Officer, and several individuals with experience in operations and management of a dental lab production facility in order to position ourselves for the planned opening of our first owned and operated consolidated lab facility.
Brooks added, "Over the past 12 months CSSI has changed in a fundamental way, with new revenue generating operations and a solid operating plan to allow quick expansion in the dental lab industry. As our expansion plans come to fruition, we expect the Company will become a major competitor in the dental lab industry."
Costas, Inc. (CSSI), now doing business as Standard Dental Labs Inc., is a company engaged in discovering, acquiring, and developing dental labs throughout the United States. The company plans to acquire independent labs looking to exit the market or who may be interested in retirement. Acquiring labs will be the focus of our growth strategy. Labs will be consolidated into one regionally central lab, and continue to operate, adding revenue to the company's income statement. All North American markets with populations over 1 million are targets. The company is headquartered in Orlando, Florida.
This press release and the statements of representatives of Costas, Inc. (the "Company") related thereto contain, or may contain, among other things, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are "forward-looking statements," including any other statements of non-historical information. These forward-looking statements are subject to significant known and unknown risks and uncertainties and are often identified by the use of forward-looking terminology such as "guidance," "projects," "may," "could," "would," "should," "believes," "expects," "anticipates," "estimates," "intends," "plans," "ultimately" or similar expressions. All forward-looking statements involve material assumptions, risks and uncertainties, and the expectations contained in such statements may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company's actual results (including, without limitation, Costas' ability to advance its business, generate revenue and profit and operate as a public company) could differ materially from those stated or anticipated in these forward-looking statements as a result of a variety of factors, including factors and risks discussed in the periodic reports that the company files with OTC Markets (Pink Sheets). All forward-looking statements attributable to the company or persons acting on its behalf are expressly qualified in their entirety by these factors. The company undertakes no duty to update these forward-looking statements except as required by law.
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SOURCE: Costas, Inc.