Cardiff Lexington Announces First Quarter 2025 Financial Results

May 13, 2025 at 08:30 AM EDT

26% increase in total revenue to $2.9 million compared to 1Q24
Operating income increased 148% to $543,934

LEXINGTON, KY / ACCESS Newswire / May 13, 2025 / Cardiff Lexington Corporation (OTC PINK:CDIX) announced today financial results for its first quarter ended March 31, 2025.

Alex Cunningham, Chief Executive Officer of Cardiff Lexington, commented, "Our first quarter results were characterized by strong year-over-year growth in revenue, gross profit, and operating margin, as well as an increase in non-GAAP adjusted EBITDA compared to the prior year. Demand for our services is strong and patient volume is steadily improving. In 2024, we opened several new Nova Ortho and Spine locations in key population centers throughout Florida and the southeast US, and we are now seeing the benefits of this expansion. We believe that we are well positioned to achieve record revenues in 2025."

First Quarter 2025 Financial Results (Compared to First Quarter 2024)

Total revenue increased 26% to $2,915,567. Revenue in the first quarter of 2024 included a one-time non-cash adjustment of $339,834 to better align first quarter revenue with 2024 annualized claim settlement realization rates. Non-GAAP adjusted revenue, excluding the one-time non-cash adjustment, was $2,661,966. First quarter 2025 revenue increased 9.5% over first quarter 2024 non-GAAP revenue
Gross profit increased 34% to $1,840,533, or 63% of total revenue
Income from continuing operations increased 148% to $543,934
Non-GAAP adjusted EBITDA increased 5% to $545,702

Balance Sheet (March 31, 2025, compared to December 31, 2024)

Cash of $996,758
6% increase in total assets to $25,330,628
Shareholders' equity of $2,036,047

Alex Cunningham continued, "Since the beginning of the year, we have significantly streamlined our capital structure through the ongoing conversion of long-standing preferred shares to common stock. This provides us with a transformed cap table to better support the anticipated growth in our business while also enabling higher trading volume in our shares over time."

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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)

	For the Three Months Ended
	Mar 31,			Mar 31,
	2025			2024 (Restated)
Total revenue	$	2,915,567		$	2,322,132
Total cost of sales		1,075,034			948,154
Gross profit		1,840,533			1,373,978
Operating expenses
Depreciation expense		3,365			3,365
Loss on disposal of fixed assets		12,593			0
Stock compensation expense		0			300,225
Selling, general and administrative		1,280,641			851,396
Total operating expenses		1,296,599			1,154,986
Income from continuing operations		543,934			218,992

Other income (expense):
Other expense		(1,597	)		0
Penalties and fees		0			(1,000	)
Interest expense		(993,114	)		(376,269	)
Amortization of debt discounts		0			(13,515	)
Total other expense		(994,711	)		(390,784	)
Net loss before discontinued operations		(450,777	)		(171,792	)
Loss from discontinued operations		0			(111,312	)

Net loss	$	(450,777	)	$	(283,104	)

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

	March 31,			December 31,
	2025			2025
ASSETS
Current assets
Cash	$	996,758		$	1,188,185
Accounts receivable-net		17,502,055			15,934,490
Prepaid and other current assets		111,691			89,901
Total current assets		18,610,504			17,212,576

Property and equipment, net		5,239			21,198
Land		540,000			540,000
Goodwill		5,666,608			5,666,608
Right of use - assets		432,127			406,950
Due from related party		4,979			4,979
Other assets		71,171			73,368
Total assets	$	25,330,628		$	23,925,679

LIABILITIES, MEZZANINE EQUITY AND DEFICIENCY IN STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expense	$	1,605,431		$	1,379,760
Accrued expenses - related parties		4,608,980			4,553,057
Accrued interest		530,973			429,200
Right of use - liability		278,025			223,330
Notes - current portion		315,857			312,180
Line of credit		10,210,485			8,645,991
Convertible notes payable, net of debt discounts of $0 and $24,821, respectively		105,000			105,000
Net liabilities of discontinued operations		238,285			238,285
Total current liabilities		17,893,036			15,886,803

Other liabilities
Notes payable		176,177			251,725
Operating lease liability - long term		161,303			185,877
Total liabilities		18,230,516			16,324,405

Mezzanine equity
Redeemable Series N Senior Convertible Preferred Stock - 3,000,000 shares authorized, $0.001 par value, stated value $4.00, 948,907 and 921,636 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively		3,448,398			3,339,317
Redeemable Series X Senior Convertible Preferred Stock - 5,000,000 shares authorized, $0.001 par value, stated value of $4.00 par value; 407,184 and 397,464 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively		1,615,667			1,576,788
Total Mezzanine Equity		5,064,065			4,916,105

Stockholders' equity
Series B Preferred Stock - 3,000,000 shares authorized, $0.001 par value, stated value of $4.00, 1,267,467 and 1,279,867 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively		5,069,868			5,119,468
Series C Preferred Stock - 500 shares authorized, $0.001 par value, stated value of $4.00, 74 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively		296			296
Series E Preferred Stock - 1,000,000 shares authorized, $0.001 par value, stated value $4.00, 175,375 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively		701,500			701,500
Series F-1 Preferred Stock - 50,000 shares authorized, $0.001 par value, stated value $4.00, 3,875 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively		15,500			15,500
Series I Preferred Stock - 15,000,000 shares authorized, $0.001 par value, stated value $4.00, 10,466,592 and 10,469,092 issued and outstanding at March 31, 2025 and December 31, 2024, respectively		41,866,368			41,876,368
Series L Preferred Stock - 400,000 shares authorized, $0.001 par value, stated value $4.00, 319,493 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively		1,277,972			1,277,972
Series Y Senior Convertible Preferred Stock - 1,250,000 shares authorized, $0.001 par value, stated value of $4.00, 990,900 and 979,125 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively		3,963,600			3,916,500
Common Stock; 300,000,000 shares authorized, $0.001 par value; 15,330,275 and 15,300,475 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively		15,330			15,300
Additional paid-in capital		22,770,920			22,711,350
Accumulated deficit		(73,645,307	)		(72,949,085	)
Total stockholders' equity		2,036,047			2,685,169
Total liabilities, mezzanine equity and stockholders' equity	$	25,330,628		$	23,925,679

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

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

	For the Three Months Ended
	March 31,
	2025			2024 (Restated)
EBITDA (1)
Net loss before discontinued operations	$	(450,777	)	$	(171,792	)
Add:
Interest		993,114			376,269
Taxes		0			0
Depreciation		3,365			3,365
Amortization		0			13,515

EBITDA (1)	$	545,702		$	221,357

Adjusted EBITDA (2)
EBITDA	$	545,702		$	221,357
Add:
Stock compensation expense for shares issued		0			300,225

Adjusted EBITDA (2)	$	545,702		$	521,582

(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	$	545,702		$	521,582
Add:
Scaling and restructuring costs for business growth		0			87,360
Acquisition related costs		56,635			0

Adjusted EBITDA excluding other non-recurring costs (3)	$	602,336		$	608,942

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 Three Months Ended
	March 31, 2025		March 31, 2024

GAAP Revenue	$	2,915,567	$	2,322,132
Adjustments to Claim Settlement Realization Rate		-		339,834
Non-GAAP Adjusted Revenue		2,915,567		2,661,966

SOURCE: Cardiff Lexington Corporation

View the original press release on ACCESS Newswire

Cardiff Lexington Announces First Quarter 2025 Financial Results

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