Cardiff Lexington Corporation · OTC:CDIX
Cardiff Lexington — IPO Roadshow (June 2024)
27 slides from Cardiff Lexington's IPO roadshow presentation, Jun 17, 2024
Slide 1: Investor Presentation June 2024
June 2024 INVESTOR PRESENTATION OTC: CDIX Free Writing Prospectus filed pursuant to Rule 433 Registration Statement on Form S - 1 (File No. 333 - 273324) June 14, 2024
Slide 2: Disclaimer
DISCLAIMER This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solici tat ion of an offer to buy or subscribe for securities of Cardiff Lexington (the “Company”) in any jurisdiction or an inducement to enter into investment activity.
Slide 3: Disclaimer (continued) - Free Writing Prospectus
DISCLAIMER (continued) Free Writing Prospectus We have filed a registration statement on Form S - 1 (File No . 333 - 273324 ) (including a prospectus) with the SEC for the offering to which this communication relates . The registration statement has not become effective yet . Before you invest, you
Slide 4: Summary Risk Factors
Summary Risk Factors • The report of our independent registered public accounting firm included a “going concern” explanatory paragraph . • Our acquisition strategy exposes us to substantial risk . • We may experience difficulty as we evaluate, acquire and integrate businesses that we may acquire, w
Slide 5: Summary Risk Factors (continued)
Summary Risk Factors (continued) • We may be required to spend substantial amounts to comply with statutes and regulations relating to privacy and security of protected health information . • State efforts to regulate the construction or expansion of health care facilities could impair our ability t
Slide 6: Offering Summary
Offering Summary 6 Cardiff Lexington Corporation Issuer Common Stock Securities Offered $8,000,000 (excluding over - allotment option) Proposed Offering Amount $4.00 - $6.00 Price Range Nasdaq Capital Market: CDIX Proposed Exchange/Ticker 39,484,061 (including approximately 26,092,594 shares to be i
Slide 7: Cardiff Lexington: A Fore-Runner in the Lien-Based Medical Industry
CARDIFF LEXINGTON A Fore - Runner in the Lien - Based Medical Industry With the acquisition of Nova Ortho and Spine In 2021, Cardiff Lexington established a strategic foothold in the healthcare space. We are profitably pioneering an innovative approach to healthcare management that offers elevated p
Slide 8: Acquisition of Nova Ortho and Spine
In 2021, Cardiff Lexington acquired Nova Ortho and Spine as a wholly - owned subsidiary. Nova Ortho and Spine’s early success and asset - light business structure made it the ideal partner to launch Cardiff Lexington’s Healthcare Division. Given its success to date, the Company has largely divested
Slide 9: Why Orthopedics?
• One of the fastest - growing categories in US Healthcare • Compared to other clinical subspecialties, orthopedics remains highly fragmented across the nation • Over the next decade, providers will continue to face unprecedented demand growth primarily fueled by an aging patient population suscepti
Slide 10: The Uninsured Personal Injury Landscape
THE UNINSURED PERSONAL INJURY LANDSCAPE 10 Injury Medical Care Legal Counsel Cardiff Lexington Settlement Injury occurs Individual receives medical care and is discharged Individual engages PI attorney and determines that claim and settlement are likely Attorney directs individual to healthcare prov
Slide 11: Nova Ortho and Spine at a Glance
NOVA ORTHO AND SPINE AT A GLANCE CAPACITY FOR SUBSTANTIAL ORGANIC GROWTH • All locations collectively operating at only 35% capacity HIGH DEMAND • Nova Ortho and Spine currently sees approximately 165 - 185 patients per month across 11 locations • Robust referral network 11 FULFILLING THE NEEDS OF A
Slide 12: Investment Highlights
INVESTMENT HIGHLIGHTS • Attractive demographics – Aging patient population and rising number of personal and work - related injuries • Recession resistant – Healthcare sector historically has performed in both good and bad economies • Innovative p ayor m odel – Elevates standard of care for personal
Slide 13: Favorable External Growth Drivers
FAVORABLE EXTERNAL GROWTH DRIVERS 13 Increasing healthcare costs, broader care modalities, and increasing claim frequency are driving strong and sustainable growth for specialized personal injury providers 70 75 80 85 90 95 100 3000 3500 4000 4500 5000 5500 6000 6500 7000 7500 8000 2013 2015 2017 20
Slide 14: Nova Ortho and Spine Has Seen Consistent Revenue Growth
NOVA ORTHO AND SPINE HAS SEEN CONSISTENT REVENUE GROWTH OVER THE YEARS (In Millions) $1.5 14 2021 2022 2023 $5.4 $10.7 $11.9
Slide 15: A Unique and Powerful Economic Model
A UNIQUE AND POWERFUL ECONOMIC MODEL Leverages Extended A/R Timeline To Drive Significant Economic Returns 99.8% Receive a maximum of $25,000 from patient’s Personal Injury Protection (PIP) • Insulated by a Letter of Protection to ensure payment in full from insurance settlement • Ability to f actor
Slide 16: Nova Ortho and Spine Milestones and Accomplishments
NOVA ORTHO AND SPINE MILESTONES AND ACCOMPLISHMENTS Proven track record of profitability and growth • Nova Ortho and Spine locations increase to 5 as Company expands into population centers throughout Florida 2020 • Cardiff Lexington completes acquisition of Nova Ortho and Spine • 7 locations • 10 -
Slide 17: Nova Ortho and Spine at a Glance, Cont.
• Okeechobee • Ft. Pierce • Vero Beach • Palm Bay • Tallahassee • Chipley • Madison • Sebastian • Rockledge • Port St. Lucie 11 locations strategically positioned in population centers throughout Florida and Georgia NOVA ORTHO AND SPINE AT A GLANCE, CONT. 17 Florida has the most personal injury clai
Slide 18: A Superior Service Model
A SUPERIOR SERVICE MODEL Enabling critical access to high - quality care for traumatic injury patients TRUSTED REFERRAL NETWORK Patients are primarily referred through a growing network of trusted physicians, physical therapists and chiropractors A TRUE PARTNER THROUGH THE LIFECYCLE OF A CLAIM As em
Slide 19: Financial Strength
FINANCIAL STRENGTH 19
Slide 20: Financial Highlights
FINANCIAL HIGHLIGHTS 20 • 1Q24 Total revenue of $2.7 million consistent with 1Q23; 12% sequential increase over 4Q23 • 1Q24 Gross margin of 64% consistent with 1Q23; Sequential increase of 530 basis points over 4Q23 • 1Q24 operating income of approximately $219,000 • Excluding non - cash scaling exp
Slide 21: Improved Balance Sheet
IMPROVED BALANCE SHEET (In Millions) • 9 % increase in total assets to $ 22.6 M • 65% increase in shareholders' equity to $1.2M • Improved net working capital of $915,000 compared to $317,000 at 12.31.23 3.31.24 vs 12.31.23: 21
Slide 22: Multiple Levers for Growth
MULTIPLE LEVERS FOR GROWTH Expand into contiguous businesses via acquisition - Multiple complementary verticals identified including MRI clinics, Medevac providers, etc. Expand geographically - Targeting expansion into broader Southeast region through organic growth and strategic acquisitions Organi
Slide 23: Summary: Cardiff Lexington's Flywheel Effect
Increase Capacity Utilization and Expand Footprint More Patients Optimal Patient Care and Outcomes High ROI Capital Fuels Growth Cardiff Lexington’s Flywheel Effect Building an innovative economic high growth model that profitably bridges the gap between underserved patients and healthcare providers
Slide 24: Thank You
© CARDIFF LEXINGTON CORPORATION A PUBLIC HOLDING COMPANY Thank You
Slide 25: Appendix
© CARDIFF LEXINGTON CORPORATION A PUBLIC HOLDING COMPANY Appendix
Slide 26: Reconciliation of Non-Cash Scaling Expenses
RECONCILIATION OF NON - CASH SCALING EXPENSES 3/31/24 $219,000 Operating income Add: 195,000 Board of directors' stock compensation 7,500 Board of directors’ meeting compensation 93,600 Management incentive stock compensation 11,600 Services firm stock expense 53,000 Legal expense 35,000 Auditor con
Slide 27: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON - GAAP MEASURES 12/31/22 12/31/23 Non - GAAP Adjusted EBITDA $(3,250,638) $3,114,914 Net income/(loss) before discontinued operations Add: 6,387,309 1,956,266 Interest - - Taxes 23,132 20,777 Depreciation 253,823 136,518 Amortization 3,413,626 5,228,475 EBITDA 1 1 EBITDA is a n