Cardiff Lexington Announces Second Quarter 2024 Financial Results

Significantly enhanced balance sheet positions company for long-term growth

Cardiff Lexington Corporation (OTC PINK:CDIX) announced today financial results for its second quarter and six months ended June 30, 2024.

Alex Cunningham, Chief Executive Officer of Cardiff Lexington, commented, "Our second quarter results were highlighted by a significantly improved balance sheet with shareholders' equity increasing to $5.8 million, 698% as compared to year end, as we strengthen our capital structure and position Cardiff Lexington for future growth.

"Among the many important initiatives underway, a major focus for our business is to continue expanding our network of healthcare locations throughout Florida and the broader southeast United States. To that end, we opened our 12th Nova Ortho and Spine location in Orlando, Florida subsequent to the close of the quarter. This location is performing well, and further enhances our visibility and patient access while providing us with a key presence in a larger metropolitan market.

"While our second quarter revenue was impacted by the timing of certain larger surgeries, we are on track to drive strengthened revenue and earnings performance in the back half of the year and into 2025 driven by an expanded network of healthcare locations and a strong reputation as a provider of high-quality medical care in a high-volume market."

Second Quarter 2024 Financial Highlights

  • Revenue of $2,330,964.

  • Gross profit margin of 66%.

  • Loss from continuing operations was $202,345. Included in SG&A expenses in 2Q 2024 were higher expenses associated with the anticipated growth of the business as well as charges for increased bad debt expense of $902,183 as a result of accepting lower patient claims settlement amounts due to efforts to accelerate cash collection.

  • Adjusted EBITDA was a loss of $118,428.

Six Months 2024 Financial Highlights

  • Revenue of $4,992,930.

  • Gross profit margin of 65%.

  • Income from continuing operations was $16,647. Included in operating expenses for the six months ended June 30, 2024 were increased expenses associated with the anticipated growth of the business, and increased bad debt expense of $1,242,017 as referenced above.

  • Adjusted EBITDA was $403,154.

Balance Sheet Highlights (June 30, 2024 compared to December 31, 2023)

  • 269% increase in cash to $3,196,795.

  • 19% increase in total assets to $24,659,020.

  • 698% increase in shareholders' equity to $5,837,412.

Mr. Cunningham concluded, "As one of the fastest growing sectors in U.S. healthcare, it's becoming increasingly clear that orthopedic healthcare is a very attractive long-term growth market for us. Compared to other clinical specialties, orthopedics remains highly fragmented, and over the next decade, we believe that healthcare providers will continue to experience increasing demand primarily driven by an aging patient population and a rising number of car accidents nationwide. The trajectory of this market is encouraging, and we're optimistic about our growth prospects - both organic and through acquisition - that we believe will help us to drive enhanced value for shareholders."

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About Cardiff Lexington Corporation:

Cardiff Lexington Corporation is a holding company focused on locating, acquiring, and building middle market, niche companies, primarily in the healthcare industry. 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 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.

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 SIX MONTHS ENDED JUNE 30, 2024 and 2023
(UNAUDITED)


Three Months
Ended June 30,
Six Months
Ended June 30,

2024

2023
(Restated)

2024

2023
(Restated)
REVENUE

$

2,330,964

$

3,364,506

$

4,992,930

$

6,070,905

COST OF SALES

793,010

1,081,689

1,741,164

2,037,984

GROSS PROFIT

1,537,954

2,282,817

3,251,766

4,032,921


OPERATING EXPENSES
Depreciation expense

3,366

3,365

6,731

8,000

Share based compensation

-

-

300,225

-

Selling, general and administrative

1,736,933

530,013

2,928,163

1,517,933

Total operating expenses

1,740,299

533,378

3,235,119

1,525,933


(LOSS) INCOME FROM CONTINUING OPERATIONS

(202,345

)

1,749,439

16,647

2,506,988


OTHER INCOME (EXPENSE)
Other income

2,047

-

2,047

204

Gain on debt refinance and forgiveness

78,834

-

78,834

390

Penalties and fees

(330

)

(15,000

)

(1,330

)

(32,000

)

Interest expense

(41,347

)

(843,918

)

(417,616

)

(1,537,579

)

Amortization of debt discounts

(11,306

)

(30,633

)

(24,821

)

(48,616

)

Total other income (expense)

27,898

(889,551

)

(362,886

)

(1,617,601

)


NET (LOSS) INCOME BEFORE DISCONTINUED OPERATIONS

(174,447

)

859,888

(346,239

)

889,387

LOSS FROM DISCONTINUED OPERATIONS

-

(43,810

)

(111,312

)

(89,300

)

NET (LOSS) INCOME FOR THE PERIOD

$

(174,447

)

$

816,078

$

(457,551

)

$

800,087


PREFERRED STOCK DIVIDENDS

(326,174

)

$

(125,744

)

$

(477,808

)

(454,419

)

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS

$

(500,621

)

$

690,334

$

(935,359

)

$

345,668


BASIC (LOSS) INCOME PER SHARE
CONTINUING OPERATIONS

$

(0.04

)

$

55.66

$

(0.11

)

$

28.75

DISCONTINUED OPERATIONS

$

0.00

$

(3.53

)

$

(0.01

)

$

(7.43

)


DILUTED (LOSS) INCOME PER SHARE
CONTINUING OPERATIONS

$

(0.04

)

$

3.59

$

(0.11

)

$

1.45

DISCONTINUED OPERATIONS

$

0.00

$

(3.53

)

$

(0.01

)

$

(7.43

)


WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC

12,792,767

12,403

8,305,493

12,024

WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED

12,792,767

192,477

8,305,493

237,814

CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2024 AND DECEMBER 31, 2023
(UNAUDITED)


December 31, 2023


June 30, 2024

(Restated)

ASSETS
Current assets
Cash

$

3,196,795

$

866,943

Accounts receivable-net

14,818,277

13,305,254

Prepaid and other current assets

5,000

5,000

Total current assets

18,020,072

14,177,197


Property and equipment, net

27,929

34,661

Land

540,000

540,000

Goodwill

5,666,608

5,666,608

Right of use - assets

348,702

289,062

Due from related party

4,979

4,979

Other assets

50,730

33,304

Total assets

$

24,659,020

$

20,745,811


LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expense

$

1,679,731

$

2,047,131

Accrued expenses - related parties

4,353,056

4,733,057

Accrued interest

103,345

620,963

Right of use - liabilities

173,985

157,669

Due to director and officer

-

120,997

Notes payable - current portion

550,900

15,977

Line of credit

6,675,746

2,120,100

Convertible notes payable, net of debt discounts of $0 and $24,820, respectively

110,000

3,807,030

Net liabilities of discontinued operations

237,643

237,643

Total current liabilities

13,884,406

13,860,567


Notes payable

142,391

144,666

Operating lease liability - long term

169,811

119,056

Total liabilities

14,196,608

14,124,289


Mezzanine equity
Redeemable Series N Senior Convertible Preferred Stock - 3,000,000 shares authorized, $0.001 par value, stated value $4.00, 868,056 shares issued and outstanding at June 30, 2024 and December 31, 2023

3,125,000

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 June 30, 2024 and December 31, 2023, respectively

-

307,980

Redeemable Series X Senior Convertible Preferred Stock - 5,000,000 shares authorized, $0.001 par value, stated value of $4.00 par value; 375,000 shares issued and outstanding at June 30, 2024 and December 31, 2023

1,500,000

1,690,685

Total Mezzanine Equity

4,625,000

5,890,104


Stockholders' equity
Series B Preferred Stock - 3,000,000 shares authorized, $0.001 par value, stated value of $4.00, 980,179 and 2,139,478 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively

3,920,716

8,557,912

Series C Preferred Stock - 500 shares authorized, $0.001 par value, stated value of $4.00, 60 and 123 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively

240

492

Series E Preferred Stock - 1,000,000 shares authorized, $0.001 par value, stated value $4.00, 75,375 and 155,750 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively

301,500

623,000

Series F-1 Preferred Stock - 50,000 shares authorized, $0.001 par value, stated value $4.00, 25,750 and 35,752 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively

103,000

143,008

Series I Preferred Stock - 15,000,000 shares authorized, $0.001 par value, stated value $4.00, 11,640,500 and 14,885,000 issued and outstanding at June 30, 2024 and December 31, 2023, respectively

46,562,000

59,540,000

Series J Preferred Stock - 2,000,000 shares authorized, $0.001 par value, stated value $4.00, 0 and 1,713,584 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively

-

6,854,336

Series L Preferred Stock - 400,000 shares authorized, $0.001 par value, stated value $4.00, 319,493 shares issued and outstanding at June 30, 2024 and December 31, 2023

1,277,972

1,277,972

Series Y Senior Convertible Preferred Stock - 1,000,000 shares authorized, $0.001 par value, stated value of $4.00, 938,908 and 0 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively

3,755,632

-

Common Stock; 300,000,000 shares authorized, $0.001 par value; 13,626,376 and 25,121 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively

13,626

25

Additional paid-in capital

19,522,200

(7,581,212

)

Accumulated deficit

(69,619,474

)

(68,684,115

)

Total stockholders' equity

5,837,412

731,418

Total liabilities, mezzanine equity and stockholders' equity

$

24,659,020

$

20,745,811

CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023
(UNAUDITED)
The following table reconciles Net income (loss) before discontinued operations (a GAAP measure) to EBITDA (a non-GAAP measure)

Unaudited

Unaudited

For the Three Months Ended

For the Six Months Ended

June 30,

June 30,


2024

2023
(Restated)

2024

2023
(Restated)

EBITDA (1)
Net income (loss) before discontinued operations

$

(174,447

)

$

859,888

$

(346,239

)

$

889,387

Add:
Interest

41,347

843,918

417,616

1,537,579

Taxes

0

0

0

0

Depreciation

3,366

3,365

6,731

8,000

Amortization

11,306

30,633

24,821

48,616


EBITDA (1)

$

(118,428

)

$

1,737,804

$

102,929

$

2,483,582


Adjusted EBITDA (2)
EBITDA

$

(118,428

)

$

1,737,804

$

102,929

$

2,483,582

Add:
Stock compensation expense for shares issued

0

0

300,225

0



Adjusted EBITDA (2)

$

(118,428

)

$

1,737,804

$

403,154

$

2,483,582


(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.

Contact Information
Walter Frank
Investor Relations
cardifflexington@imsinvestorrelations.com
2039729200

SOURCE: Cardiff Lexington Corporation

Source: Cardiff Lexington Corporation