CARDIFF LEXINGTON CORPORATION REPORTS DECREASED REVENUE, NET LOSS, AND OPERATING EXPENSES IN Q3 2024

As of September 30, 2024, Cardiff Lexington Corporation reported total assets of $23.5 million, an increase from $20.7 million at the end of 2023. Current assets rose to $16.8 million, driven by a significant cash increase to $1.95 million from $866,943. However, total current liabilities also increased to $14.6 million from $13.9 million, while mezzanine equity decreased to $4.8 million from $5.9 million. Notably, stockholders' equity surged to $3.7 million from $731,418.

In terms of financial performance, the company experienced a substantial decline in revenue. For the three months ended September 30, 2024, revenue was $1.36 million, down 60.2% from $3.41 million in the same period of 2023. For the nine-month period, revenue decreased by 45.7% to $5.15 million from $9.48 million. This decline was attributed to operational disruptions caused by hurricanes in Florida and a reduction in the settlement realization rate from 49% to 44%, which resulted in a $1.65 million adjustment in accounts receivable and revenue.

Gross profit for the third quarter fell to $355,040, an 87.6% decrease from $2.85 million in 2023, with gross margin dropping from 83.8% to 26.2%. Operating expenses rose significantly, totaling $940,200 for the quarter, compared to $581,042 in the prior year. The company reported a loss from continuing operations of $(585,160) for the third quarter, contrasting sharply with income of $2.27 million in 2023. The net loss before discontinued operations was $(1.98 million), compared to a net income of $1.98 million in the same quarter of the previous year.

For the nine months ended September 30, 2024, the net loss was $(2.39 million), a stark contrast to a net income of $2.78 million in 2023. The company’s cash flow from operating activities showed a significant outflow of $(3.99 million), compared to $(557,542) in the same period last year. However, net cash provided by financing activities increased to $4.97 million from $426,671, indicating a reliance on external financing to support operations.

Strategically, Cardiff Lexington has been active in restructuring its operations, including the sale of its subsidiary, Platinum Tax Defenders, in November 2023, which is now presented as a discontinued operation. The company is also in discussions with potential investors to raise capital for future acquisitions and operational sustainability, amid concerns regarding its ability to continue as a going concern without additional funding.