Cardiff Lexington Announces Fourth Quarter and Full Year 2024 Financial Results

March 17, 2025 at 08:00 AM EDT

Q4 revenue increases 31% to $3.1 million
4Q gross profit increases to $2.0 million, or 65% of total revenue
267% increase in 2024 shareholders' equity compared to 2023
Company expanded Nova Ortho and Spine footprint and enhanced patient volume in 2024

LEXINGTON, KY / ACCESS Newswire / March 17, 2025 / Cardiff Lexington Corporation (OTC PINK:CDIX) announced today financial results for its fourth quarter and full year ended December 31, 2024.

Alex Cunningham, Chief Executive Officer of Cardiff Lexington, commented, "In the fourth quarter we reported 31% revenue growth with 65% gross margins and strong adjusted EBITDA, capping off a year of solid execution delivering world class care to our patients. We opened two new Nova Ortho and Spine locations during the year: Our Valdosta, Georgia location, opened in February 2024, is our first location outside the state of Florida, and our Orlando location, opened in July, establishes Nova Ortho and Spine in a major metropolitan area with greater population density and higher patient traffic. Our patient volume improved throughout the year, and we expect to continue growing our patient network as we expand into new locations.

"That said, this year was not without its challenges," Mr. Cunningham continued. "Hurricane Helene forced us to halt operations across all Nova Ortho and Spine locations in Florida for multiple weeks in September. Additionally, we recognized one-time, non-cash adjustments in the first three quarters of 2024 totaling $2.8 million to better align revenue with 2024 annualized claim settlement realization rates. It is important to note that our 2024 non-GAAP adjusted revenue, which excludes these non-cash adjustments, was $11.1 million.

"Looking forward, demand is as strong as it has ever been at our clinics, and we continue to explore acquisition opportunities to further broaden our footprint. Our balance sheet is significantly improved with shareholders' equity increasing 267% compared to 2023, and we are well positioned to capitalize on the many opportunities that we're seeing in the market to drive growth and value in fiscal 2025," Mr. Cunningham concluded.

Fourth Quarter 2024 Financial Highlights (Compared to Fourth Quarter 2023)

Total revenue increased 31% to $3,120,710
Gross profit increased to $2,020,847, or 65% of total revenue
Income from continuing operations decreased 20% to $332,147
Non-GAAP adjusted EBITDA increased 20% to $579,370
Non-GAAP adjusted EBITDA excluding other non-recurring costs increased 85% to $894,202

Balance Sheet Highlights (December 31, 2024, compared to December 31, 2023)

37% increase in cash to $1,188,185
15% increase in total assets to $23,925,679
267% increase in shareholders' equity to $2,685,169

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About Cardiff Lexington Corporation:

Cardiff Lexington Corporation is a unique targeted healthcare holding company focused on locating, acquiring, and building middle market, niche companies, primarily in Orthopedics, Spine Care, and Pain Management. 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, LLC, which operates a group of regional primary specialty and ancillary care facilities throughout Florida and Georgia 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.

Use of Non-GAAP Financial Measures

Cardiff Lexington Corporation prepares its consolidated financial statements in accordance with United States generally accepted accounting principles ("GAAP"). In addition to GAAP disclosures, this document contains financial information and measures considered to be "non-GAAP". These non-GAAP measures can be used in order to gain a more complete and accurate understanding of the Company's financial condition and results. Non-GAAP financial measures should be considered in conjunction with, and not as a substitute to GAAP financial measures.

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 TWELVE MONTHS ENDED DECEMBER 31, 2024 AND 2023

	Unaudited						Audited
	For the Three Months Ended						For the Year Ended
	Dec 31,			Dec 31,			Dec 31,			Dec 31,
	2024			2023 (Restated)			2024			2023 (Restated)
Total revenue	$	3,120,710		$	2,376,502		$	8,270,126		$	11,853,266
Total cost of sales		1,099,863			971,217			3,841,628			3,560,624
Gross profit		2,020,847			1,405,285			4,428,498			8,292,642
Operating expenses
Depreciation expense		3,365			9,412			13,461			20,777
Selling, general and administrative		1,440,835			981,209			4,063,816			3,076,820
Stock compensation expense		244,500			0			544,725			0
Total operating expenses		1,688,700			990,621			4,622,002			3,097,597
(Loss) income from continuing operations		332,147			414,664			(193,504	)		5,195,045

Other income (expense):
Other expense		(642	)		(49,999	)		(5,362	)		(49,795	)
Gain on debt refinance, forgiveness and settlement		0			115,058			78,834			115,448
Penalties and fees		0			(5,000	)		(1,330	)		(53,000	)
Interest expense		(1,241,847	)		(192,568	)		(3,045,504	)		(1,956,266	)
Amortization of debt discounts		0			(41,854	)		(24,821	)		(136,518	)
Total other expense		(1,242,489	)		(174,363	)		(2,998,183	)		(2,080,131	)
Net (loss) income before discontinued operations		(910,342	)		240,301			(3,191,687	)		3,114,914
Loss from discontinued operations		0			6,485			(111,312	)		(86,520	)

Net (loss) income	$	(910,342	)	$	246,786		$	(3,302,999	)	$	3,028,394

CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2024 AND DECEMBER 31, 2023

	December 31,		December 31,
	2024		2023
ASSETS			(Restated)
Current assets
Cash	$	1,188,185	$	866,943
Accounts receivable-net		15,934,490		13,305,254
Prepaid and other current assets		89,901		5,000
Total current assets		17,212,576		14,177,197

Property and equipment, net		21,198		34,661
Land		540,000		540,000
Goodwill		5,666,608		5,666,608
Right of use - assets		406,950		289,062
Due from related party		4,979		4,979
Other assets		73,368		33,304
Total assets	$	23,925,679	$	20,745,811

LIABILITIES, MEZZANINE EQUITY AND DEFICIENCY IN STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expense	$	1,379,760	$	2,047,131
Accrued expenses - related parties		4,553,057		4,733,057
Accrued interest		429,200		620,963
Right of use - liability		223,330		157,669
Due to director and officer		0		120,997
Notes - current portion		312,180		15,977
Line of credit		8,645,991		2,120,100
Convertible notes payable, net of debt discounts of $0 and $24,821, respectively		105,000		3,807,030
Net liabilities of discontinued operations		238,285		237,643
Total current liabilities		15,886,803		13,860,567

Other liabilities
Notes payable		251,725		144,666
Operating lease liability - long term		185,877		119,056
Total liabilities		16,324,405		14,124,289

Mezzanine equity
Redeemable Series N Senior Convertible Preferred Stock¹ - 3,000,000 shares authorized, $0.001 par value, stated value $4.00, 921,636 and 868,056 shares issued and outstanding at December 31, 2024 and 2023, respectively		3,339,317		3,891,439
Redeemable Series R Senior Convertible Preferred Stock - 5,000 shares authorized, $0.001 par value, stated value of $1,200, 0 and 165 shares issued and outstanding at December 31, 2024 and 2023, respectively		0		307,980
Redeemable Series X Senior Convertible Preferred Stock² - 5,000,000 shares authorized, $0.001 par value, stated value of $4.00 par value; 397,464 and 375,000 shares issued and outstanding at December 31, 2024 and 2023		1,576,788		1,690,685
Total Mezzanine Equity		4,916,105		5,890,104

Stockholders' equity
Series B Preferred Stock3 - 3,000,000 shares authorized, $0.001 par value, stated value of $4.00, 1,279,867 and 2,139,478 shares issued and outstanding at December 31, 2024 and 2023, respectively		5,119,468		8,557,912
Series C Preferred Stock3 - 500 shares authorized, $0.001 par value, stated value of $4.00, 74 and 123 shares issued and outstanding at December 31, 2024 and 2023, respectively		296		492
Series E Preferred Stock3 - 1,000,000 shares authorized, $0.001 par value, stated value $4.00, 175,375 and 155,750 shares issued and outstanding at December 31, 2024 and 2023, respectively		701,500		623,000
Series F-1 Preferred Stock3 - 50,000 shares authorized, $0.001 par value, stated value $4.00, 3,875 and 35,752 shares issued and outstanding at December 31, 2024 and 2023, respectively		15,500		143,008
Series I Preferred Stock3 - 15,000,000 shares authorized, $0.001 par value, stated value $4.00, 10,469,092 and 14,885,000 issued and outstanding at December 31, 2024 and 2023, respectively		41,876,368		59,540,000
Series J Preferred Stock3 - 2,000,000 shares authorized, $0.001 par value, stated value $4.00, 0 and 1,713,584 shares issued and outstanding at December 31, 2024 and 2023, respectively		0		6,854,336
Series L Preferred Stock3 - 400,000 shares authorized, $0.001 par value, stated value $4.00, 319,493 shares issued and outstanding at December 31, 2024 and 2023		1,277,972		1,277,972
Series Y Senior Convertible Preferred Stock4 - 1,000,000 shares authorized, $0.001 par value, stated value $4.00, 979,125 and 0 shares issued and outstanding at December 31, 2024 and 2023, respectively		3,916,500		0
Common Stock; 7,500,000,000 shares authorized, $0.001 par value; 15,300,475 and 14,555,601 shares issued and outstanding at December 31, 2024 and 2023, respectively		15,300		25
Additional paid-in capital		22,711,350		-7,581,212
Accumulated deficit		-72,949,085		-68,684,115
Total stockholders' equity		2,685,169		731418
Total liabilities, mezzanine equity and stockholders' equity	$	23,925,679	$	20,745,811

CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2024 AND 2023

The following table reconciles Net (loss) income before discontinued operations (a GAAP measure) to EBITDA (a non-GAAP measure)

	Unaudited					Audited
	For the Three Months Ended					For the Year Ended
	December 31,					December 31,
	2024			2023 (Restated)		2024			2023 (Restated)
EBITDA (1)
Net (loss) income before discontinued operations	$	(910,342	)	$	240,301	$	(3,191,687	)	$	3,114,914
Add:
Interest		1,241,847			192,568		3,045,504			1,956,266
Taxes		0			0		0			0
Depreciation		3,365			9,412		13,461			20,777
Amortization		0			41,854		24,821			136,518

EBITDA (1)	$	334,870		$	484,135	$	(107,901	)	$	5,228,475

Adjusted EBITDA (2)
EBITDA	$	334,870		$	484,135	$	(107,901	)	$	5,228,475
Add:
Change in estimate for settlement realization rate		0			0		1,650,474			0
Stock compensation expense for shares issued		244,500			0		544,725			0


Adjusted EBITDA (2)	$	579,370		$	484,135	$	2,087,298		$	5,228,475

(1) EBITDA is a non-GAAP financial measure defined as Earnings Before Interest, Income Tax, Depreciation and Amortization.
(2) Adjusted EBITDA is a non-GAAP financial measure that is the sum of EBITDA plus non-recurring and non-cash charges.


Adjusted EBITDA excluding other non-recurring costs (3)

Adjusted EBITDA	$	579,370		$	484,135	$	2,087,298		$	5,228,475
Add:
Scaling and restructuring costs for business growth		284,252			0		764,778			0
Acquisition related costs		30,581			0		30,581			0

Adjusted EBITDA excluding other non-recurring costs (3)	$	894,202		$	484,135	$	2,882,657		$	5,228,475

(3) Adjusted EBITDA excluding other non-recurring costs is a non-GAAP financial measure that is the sum of Adjusted EBITDA plus other non-recurring costs.

CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES
RECONCILIATION OF REVENUE FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2024
(UNAUDITED)

	For the Three Months Ended		For the Twelve Months Ended
	December 31, 2024		December 31, 2024

GAAP Revenue	$	3,120,710	$	8,270,126
Adjustments to Claim Settlement Realization Rate		-		2,849,629
Non-GAAP Adjusted Revenue		3,120,710		11,119,755

The adjustment to claim settlement realization rate recorded in Q1 $339,834, Q2 $859,321 and Q3 $1,650,474

SOURCE: Cardiff Lexington Corporation

View the original press release on ACCESS Newswire

Cardiff Lexington Announces Fourth Quarter and Full Year 2024 Financial Results

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