Cardiff Lexington Announces Fourth Quarter and Full Year 2024 Financial Results

Rhea-AI Summary

Cardiff Lexington (CDIX) reported strong Q4 2024 financial results, with revenue increasing 31% to $3.1 million and gross profit reaching $2.0 million (65% margin). The company expanded its Nova Ortho and Spine footprint with two new locations in 2024: Valdosta, Georgia and Orlando, Florida.

Key financial highlights include a 37% increase in cash to $1.2 million, 15% increase in total assets to $23.9 million, and a significant 267% increase in shareholders' equity to $2.7 million. However, income from continuing operations decreased 20% to $332,147.

The company faced challenges in 2024, including Hurricane Helene disrupting Florida operations and $2.8 million in one-time non-cash adjustments. Non-GAAP adjusted revenue for 2024 was $11.1 million, with Q4 adjusted EBITDA increasing 20% to $579,370.

Positive

• Revenue growth of 31% in Q4 2024 to $3.1 million
• Strong gross profit margin of 65%
• 267% increase in shareholders' equity compared to 2023
• 37% increase in cash position to $1.2 million
• Geographic expansion with two new locations in 2024
• 85% increase in adjusted EBITDA excluding non-recurring costs

Negative

• 20% decrease in income from continuing operations
• Operations disrupted by Hurricane Helene in September
• $2.8 million in one-time non-cash adjustments in first three quarters

• 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

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								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

FAQ

What was Cardiff Lexington's (CDIX) revenue growth in Q4 2024?

CDIX reported a 31% increase in Q4 2024 revenue to $3.1 million compared to Q4 2023.

How much did Cardiff Lexington's (CDIX) shareholders' equity increase in 2024?

Shareholders' equity increased by 267% to $2.7 million compared to 2023.

Where did Cardiff Lexington (CDIX) open new Nova Ortho and Spine locations in 2024?

CDIX opened new locations in Valdosta, Georgia (February 2024) and Orlando, Florida (July 2024).

What challenges did Cardiff Lexington (CDIX) face in 2024?

CDIX faced Hurricane Helene disrupting Florida operations and $2.8 million in one-time non-cash adjustments.

What was Cardiff Lexington's (CDIX) Q4 2024 gross profit margin?

CDIX achieved a gross profit margin of 65%, with gross profit reaching $2.0 million.