Cardiff Lexington Announces Third Quarter 2023 Financial Results

November 15, 2023 at 08:00 AM EST

Revenue Growth and Significant Margin Improvement Drives Increase in Quarterly Net Income to $1.98 Million -

FT. LAUDERDALE, FL / ACCESSWIRE / November 15, 2023 / Cardiff Lexington Corporation (OTC PINK:CDIX) announced today financial results for its third quarter ended September 30, 2023.

Third Quarter Financial Highlights

9.8% growth in the Company's healthcare division drove 3.5% consolidated revenue growth to $3.4 million
83% gross profit margin in the Company's healthcare division up from 64.7% last year drove consolidated gross profit margin to 79.6% for the quarter
Operating income increased 52% to $2.3 million, or 67% of sales from $1.5 million, or 45% of sales in Q3 last year due to a deliberate focus on higher margin business and disciplined cost containment
Net income increased 415% to $1.98 million from a loss of $628,000 in Q3 last year

Nine Month Financial Highlights

16.2% growth in the Company's healthcare division drove 5.1% consolidated revenue growth to $9.8 million
72.7% gross profit margin in the Company's healthcare division up from 63.4% last year drove consolidated gross profit margin to 73% for the nine-month period
Operating income increased 41% to $4.7 million, or 47.9% of sales from $3.3 million, or 35.7% of sales in the nine-month period last year due to a deliberate focus on higher margin business and disciplined cost containment
Net income increased 247% to $2.8 million from a loss of $1.9 million in the comparable nine-month period last year

Balance Sheet Highlights at September 30, 2023

39% increase in total assets to $18.5 million compared to December 31, 2022
250% increase in stockholders' equity to $975,351 from a negative shareholders' equity of $1.47 million at December 31, 2022
Slightly positive working capital compared to a negative working capital at December 31, 2022

Alex Cunningham, Cardiff Lexington CEO, stated, "Results from our most recent third quarter reflect the culmination of efforts over the past several years to successfully position the Company within a growing healthcare sector, implement efficiencies, and streamline operations. We have taken the actions necessary to achieve and report sustainable, profitable results over consecutive quarters. Net income has reached $2.8 million thus far in 2023 which represents significant, quantifiable advancement for the Company. We expect this number to continue to grow moving forward as we begin to see the impact of the additional working capital being deployed from our new revolving financing.

Mr. Cunningham continued, "In conjunction with our significantly improving results from operations, we continue to prepare for a targeted early 2024 uplisting to a major exchange. To that end have filed with FINRA for the required share consolidation and also anticipate updating and amending our S1 registration filing to include 2023 Q3 results. In conjunction with this uplisting, it is also our intention to simplify our capital structure to best support our long term growth for shareholders."

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About Cardiff Lexington Corporation:

Cardiff Lexington Corporation is a holding company focused on locating, acquiring, and building middle market, niche companies, primarily in the healthcare industry. Fundamental to the Cardiff Lexington strategy is the service-based partnership culture which emphasizes core values, teamwork, accountability, and performance.

A substantial majority of the Company's revenue is derived from Nova Ortho and Spine, PLLC, or Nova, which the Company acquired in May of 2021 and operates a group of regional primary specialty and ancillary care facilities throughout Florida that provide traumatic injury victims with a full range of diagnostic and surgical services, primary care evaluations, interventional pain management, and specialty consultation services.

For more information on Cardiff Lexington Corporation, you may access the company's website at https://cardifflexington.com/

FORWARD LOOKING STATEMENT: This news release contains forward looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company's current views with respect to future events that involve risks and uncertainties. These risks include the failure to meet schedule or performance requirements of the Company's business, the Company's liquidity position, the Company's ability to obtain new business, the emergence of competitors with greater financial resources, and the impact of competitive pricing. In the light of these uncertainties the forward-looking events referred to in this release might not occur.

Cardiff Lexington Investor Relations
investorsrelations@cardifflexington.com
(800) 628-2100 ext. 705

IMS Investor Relations
cardifflexington@imsinvestorrelations.com
(203) 972-9200

CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022
(UNAUDITED)

	THREE MONTHS ENDED SEPTEMBER 30,						NINE MONTHS ENDED SEPTEMBER 30,
	2023			2022 (Restated)			2023			2022 (Restated)
REVENUE
Financial Services	$	32,264		$	219,872		$	304,967		$	1,156,729
Healthcare		3,405,860			3,103,409			9,476,764			8,154,934
Total revenue		3,438,124			3,323,281			9,781,731			9,311,663

COST OF SALES
Financial Services		5,604			39,963			53,730			365,185
Healthcare		551,424			1,094,794			2,589,407			2,982,418
Total cost of sales		557,028			1,134,757			2,643,137			3,347,603

GROSS PROFIT		2,881,096			2,188,524			7,138,594			5,964,060

OPERATING EXPENSES
Depreciation expense		3,365			5,783			11,365			17,349
Selling, general and administrative		607,745			685,026			2,437,511			2,625,503
Total operating expenses		611,110			690,809			2,448,876			2,642,852

INCOME FROM OPERATIONS		2,269,986			1,497,715			4,689,718			3,321,208

OTHER INCOME (EXPENSE)
Other income		-			(2	)		205			6
Gain on forgiveness of debt		-			1,397,271			390			1,397,271
Interest expense and finance charge		(226,418	)		(3,430,785	)		(1,766,041	)		(6,686,772	)
Conversion cost		(1,000	)		-			(3,000	)		-
Penalties and fees		(15,000	)		-			(45,000	)		-
Amortization of debt discounts		(46,048	)		(92,868	)		(94,664	)		(249,120	)
Total other expenses, net		(288,466	)		(2,126,384	)		(1,908,110	)		(5,538,615	)

NET INCOME (LOSS) BEFORE DISCONTINUED OPERATIONS		1,981,520			(628,669	)		2,781,608			(2,217,407	)

GAIN FROM DISCONTINUED OPERATIONS		-			363,895			-			328,353

NET INCOME (LOSS) FOR THE PERIOD	$	1,981,520		$	(264,774	)	$	2,781,608		$	(1,889,054	)
DEEMED DIVIDENDS ON PREFERRED STOCK		(142,829	)		-			(605,384	)		-
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	1,838,691		$	(264,774	)	$	2,176,224		$	(1,889,054	)

CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2023 AND DECEMBER 31, 2022
(UNAUDITED)

	September 30,2023			December 31, 2022

ASSETS
Current assets
Cash	$	181,343		$	226,802
Accounts receivable-net		11,844,738			6,604,780
Prepaid and other current assets		5,000			5,000
Total current assets		12,031,081			6,836,582

Property and equipment, net		44,073			55,439
Land		540,000			540,000
Goodwill		5,666,608			5,666,608
Right of use - assets		201,163			218,926
Due from related party		4,979			4,979
Other assets		30,823			30,823
Total assets	$	18,518,727		$	13,353,357

LIABILITIES, MEZZANINE EQUITY AND DEFICIENCY IN STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expense	$	2,515,682		$	2,038,595
Accrued expenses - related parties		4,264,557			3,750,557
Accrued interest		717,827			350,267
Right of use - liability		135,776			142,307
Due to director & officer		123,442			123,192
Notes payable		24,600			15,809
Notes payable - related party		159,662			37,024
Convertible notes payable, net of debt discounts of $66,674 and $46,798, respectively		3,952,581			3,515,752
Total current liabilities		11,894,127			9,973,503

Other liabilities
Notes payable		144,668			139,789
Operating lease liability - long term		64,147			84,871
Total liabilities		12,102,942			10,198,163

Mezzanine equity
Redeemable Series N Senior Convertible Preferred Stock - 3,000,000 shares authorized, $0.001 par value, stated value $4.00, 868,058 shares issued and outstanding at September 30, 2023 and December 31, 2022		3,787,559			3,125,002
Redeemable Series X Senior Convertible Preferred Stock - 5,000,000 shares authorized, $0.001 par value, stated value $4.00, 375,000 shares issued and outstanding at September 30, 2023 and December 31, 2022		1,652,875			1,500,000
Total Mezzanine Equity		5,440,434			4,625,002

Stockholders' equity (deficit)
Series B Preferred Stock - 3,000,000 shares authorized, $0.001 par value, stated value $4.00, 2,134,478 and 2,131,328 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively		8,537,912			8,525,313
Series C Preferred Stock - 500 shares authorized, $0.001 par value, stated value $4.00, 123 shares issued and outstanding at September 30, 2023 and December 31, 2022		488			488
Series E Preferred Stock - 1,000,000 shares authorized, $0.001 par value, stated value $4.00, 155,750 and 150,750 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively		623,000			603,000
Series F-1 Preferred Stock - 50,000 shares authorized, $0.001 par value, stated value $4.00, 35,752 shares issued and outstanding at September 30, 2023 and December 31, 2022		143,008			143,008
Series I Preferred Stock - 15,000,000 shares authorized, $0.001 par value, 14,885,000 shares issued and outstanding at September 30, 2023 and December 31, 2022		59,540,000			59,540,000
Series J Preferred Stock - 2,000,000 shares authorized, $0.001 par value, stated value $4.00, 1,713,584 shares issued and outstanding at September 30, 2023 and December 31, 2022		6,854,336			6,854,336
Series L Preferred Stock - 400,000 shares authorized, $0.001 par value, stated value $4.00, 319,493 shares issued and outstanding at September 30, 2023 and December 31, 2022		1,277,972			1,277,972
Series R Preferred Stock - 5,000 shares authorized, $0.001 par value, stated value of $1,200, 165 shares issued and outstanding at September 30, 2023 and December 31, 2022		198,000			198,000
Common Stock - 7,500,000,000 shares authorized, $0.001 par value; 1,099,475,613 and 824,793,235 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively		1,099,475			824,793
Additional paid-in capital		(8,619,611	)		(8,581,265	)
Accumulated deficit		(68,679,229	)		(70,855,453	)
Total stockholders' equity (deficit)		975,351			(1,469,808	)
Total liabilities, mezzanine equity and stockholders' equity	$	18,518,727		$	13,353,357

SOURCE: Cardiff Lexington Corporation

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Cardiff Lexington Announces Third Quarter 2023 Financial Results

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