Cardiff Lexington Announces First Quarter 2025 Financial Results

About this update from Cardiff Lexington Corporation

Cardiff Lexington Announces First Quarter 2025 Financial Results Cardiff Lexington Announces First Quarter 2025 Financial Results 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 https://app.accessnewswire.com/imagelibrary/2d1eb9ca-7cb1-458d-8b7b-a4032d483c02/1026499/cdix-factsheet-may-2025.png?v=2 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." ----- 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 [email protected] (800) 628-2100 ext. 705 or IMS Investor Relations [email protected] (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 https://app.accessnewswire.com/img.ashx?id=1026499 © Copyright 2025 ACCESS Newswire. All Rights Reserved.

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