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."
-----
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
or
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