Cardiff Lexington Corporation Reports 30% Revenue Decline and $3.30 Million Net Loss for Fiscal Year 2024

Cardiff Lexington Corporation reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with total revenue falling to $8.27 million, a decrease of 30.23% from $11.85 million in 2023. The company's gross profit also dropped sharply, down 46.60% to $4.43 million, resulting in a gross margin of 53.55%, compared to 69.96% the previous year. The decline in revenue was attributed to lower settlement realization rates from surgical procedures and an increase in lower-revenue-generating pain management treatments. Additionally, the company faced operational disruptions due to severe weather conditions in Florida, which affected patient attendance and facility operations.

In terms of operational changes, Cardiff Lexington sold its financial services subsidiary, Platinum Tax Defenders, on November 10, 2023, which was a strategic move to streamline its focus on healthcare. The company continues to operate through its healthcare subsidiary, Nova, which provides orthopedic services across twelve facilities in Florida. As of December 31, 2024, these facilities were operating at approximately 35% capacity, serving an average of 250 to 325 patients per month. The company is actively pursuing growth opportunities through acquisitions, particularly in the healthcare sector, and plans to enhance operational efficiencies.

The company’s total operating expenses increased to $4.62 million in 2024, up from $3.10 million in 2023, primarily due to rising salaries, bad debt expenses, and legal fees. This increase in expenses, coupled with a substantial rise in interest expenses to $3.05 million, contributed to a net loss of $3.30 million for the year, compared to a net income of $3.03 million in 2023. The accumulated deficit as of December 31, 2024, stood at $72.95 million, raising concerns about the company's ability to continue as a going concern.

Looking ahead, Cardiff Lexington is focused on raising additional capital to support its operations and acquisition strategy, estimating that it will need between $4 million to $10 million depending on the terms of future acquisitions. The company has indicated that it is exploring various financing options, including equity and debt financing, to address its cash flow needs. Management remains optimistic about the potential for recovery and growth, contingent on successful capital raises and operational improvements.