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Cardiff Lexington Corp (CDIX0.00%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing indicates that Cardiff Lexington Corp is an acquisition holding company focusing on undervalued and undercapitalized companies, primarily in the healthcare industry. The company aims to provide these companies with capitalization and leadership to maximize their value.
For the year ended December 31, 2024, Cardiff Lexington reported total revenue of $8,270,126, a decrease from $11,853,266 in the previous year. The decrease was attributed to a change in the mix of services provided and disruptions caused by severe weather in Florida.
The company's cost of sales increased to $3,841,628 from $3,560,624, resulting in a gross profit of $4,428,498, down from $8,292,642 in the prior year. The gross margin decreased from 69.96% to 53.55%.
Operating expenses for the year were $4,622,002, including $544,725 in share-based compensation and $4,063,816 in selling, general, and administrative expenses. This led to a loss from continuing operations of $193,504.
Cardiff Lexington reported a net loss of $3,302,999 for the year, compared to a net income of $3,028,394 in 2023. The company attributed the loss to increased interest expenses and a change in accounting estimates regarding settlement realization rates.
The company ended the year with $1,188,185 in cash and highlighted its reliance on additional financing to fund operations and execute its business plan. Cardiff Lexington's management believes that current working capital and expected additional financing should be sufficient for at least one year.
Cardiff Lexington's primary business operations are conducted through its subsidiaries, Nova Ortho and Spine, LLC, which provides healthcare services, and Edge View Properties, Inc., a real estate company. The company sold its financial services subsidiary, Platinum Tax Defenders, in 2023.
The filing also details various financial arrangements, including a revolving line of credit with DML HC Series, LLC, and a settlement agreement with a noteholder, which resulted in a new promissory note.
Cardiff Lexington's management identified material weaknesses in internal controls over financial reporting and is taking steps to address these issues, including hiring additional personnel and enhancing processes.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Cardiff Lexington Corp annual 10-K report dated March 14, 2025. To report an error, please email earnings@qz.com.