Cardiff Lexington Corp Restates Financials
Ticker: CDIX · Form: 8-K · Filed: Aug 14, 2025 · CIK: 811222
Sentiment: bearish
Topics: restatement, accounting-error, financial-reporting
TL;DR
Cardiff Lexington (CLX) is restating financials due to accounting errors. Avoid until clarified.
AI Summary
Cardiff Lexington Corporation announced on August 14, 2025, that it will not rely on previously issued financial statements or related audit reports due to an ongoing investigation. The company is restating its financial results for the fiscal year ended December 31, 2024, and interim periods thereafter. The specific reasons for the restatement are related to accounting errors identified during the preparation of its financial statements.
Why It Matters
This filing indicates potential accounting issues that could impact investor confidence and the company's reported financial health.
Risk Assessment
Risk Level: high — Restating financial statements due to accounting errors is a significant red flag that can lead to uncertainty and potential financial restatements.
Key Players & Entities
- Cardiff Lexington Corporation (company) — Registrant
- August 14, 2025 (date) — Filing Date
- August 12, 2025 (date) — Earliest Event Date
- December 31, 2024 (date) — Fiscal Year End for Restatement
FAQ
What specific accounting errors led to the non-reliance on previously issued financial statements?
The filing states that the company identified accounting errors during the preparation of its financial statements, but does not specify the exact nature of these errors.
Which financial periods are affected by this restatement?
The company will restate its financial results for the fiscal year ended December 31, 2024, and interim periods thereafter.
Has Cardiff Lexington Corporation identified the impact of these errors on its financial statements?
The filing indicates that the company is still in the process of determining the impact of these errors and will provide further details once the analysis is complete.
When does Cardiff Lexington Corporation expect to file restated financial statements?
The filing does not provide a specific timeline for the filing of the restated financial statements.
What is the company's ticker symbol?
The filing does not explicitly state the ticker symbol, but historical information suggests it may be CLX.
Filing Stats: 866 words · 3 min read · ~3 pages · Grade level 17.2 · Accepted 2025-08-14 14:33:53
Filing Documents
- cardiff_8k.htm (8-K) — 31KB
- 0001683168-25-006130.txt ( ) — 187KB
- cdif-20250812.xsd (EX-101.SCH) — 3KB
- cdif-20250812_lab.xml (EX-101.LAB) — 33KB
- cdif-20250812_pre.xml (EX-101.PRE) — 22KB
- cardiff_8k_htm.xml (XML) — 3KB
02
Item 4.02 Non-Reliance on Previously Issued Financial Statements or Related Audit Report or Completed Interim Report. On August 12, 2025, the Audit Committee of the Board of Directors (the "Audit Committee") of Cardiff Lexington Corporation (the "Company"), after consultation with management, GBQ Partners, LLC ("GBQ"), the Company's independent registered public accounting firm, and the Company's former independent registered public accounting firm, concluded that the Company's previously issued financial statements listed below (collectively, the "Affected Reports") should no longer be relied upon because of errors related solely to the classification of non-cash interest expense in the consolidated statements of cash flows. The Affected Reports are: Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2024, originally filed on May 10, 2024; Quarterly Reports on Form 10-Q for the fiscal quarters ended June 30, 2024, originally filed on August 14, 2024; Quarterly Reports on Form 10-Q for the fiscal quarters ended September 30, 2024, originally filed on November 6, 2024; Annual Report on Form 10-K for the fiscal year ended December 31, 2024, originally filed on March 14, 2025; and Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2025, originally filed on May 9, 2025. During the period ended June 30, 2025, as part of the Company's ongoing enhancements efforts to internal controls over financial reporting, a detailed review of its interest expense related to cash flow classification was performed. As a result, management identified that certain accrual-based, non-cash interest expenses related to the Company's line of credit had been inappropriately classified within financing activities rather than within operating activities in the consolidated statements of cash flows for each of the Affected Reports. The errors were presentation-only in nature and had no impact on total cash, cash equivalents, or restricted cash
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: August 14, 2025 CARDIFF LEXINGTON CORPORATION /s/ Alex Cunningham Name: Alex Cunningham Title: Chief Executive Officer 3