$CDIX

CARDIFF INTERNATIONAL INC

CIK:0000811222|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)

3 Months Ended

6 Months Ended

Jun. 30, 2026

Jun. 30, 2025

Jun. 30, 2026

Jun. 30, 2025

Income Statement [Abstract]

REVENUE

$ 2,159,557

$ 2,789,007

$ 4,381,837

$ 5,704,574

COST OF SALES

977,242

1,093,748

1,881,467

2,168,782

GROSS PROFIT

1,182,315

1,695,259

2,500,370

3,535,792

OPERATING EXPENSES

Depreciation expense

253

763

846

4,128

Loss on disposal of fixed assets

12,593

Share-based compensation

366,939

97,500

1,031,135

97,500

Selling, general and administrative

1,359,766

987,319

2,524,191

2,267,960

Total operating expenses

1,726,958

1,085,582

3,556,172

2,382,181

(LOSS) / INCOME FROM OPERATIONS

(544,643)

609,677

(1,055,802)

1,153,611

OTHER (EXPENSE) INCOME

Other income (expense)

10,081

(1,597)

Derivative liability gain (loss) on issuance and changes in fair value

226,049

(442,772)

Interest expense

(2,137,419)

(1,836,072)

(4,048,156)

(2,829,186)

Amortization of debt discounts

(22,893)

(34,331)

Total other expense

(1,934,263)

(1,836,072)

(4,515,178)

(2,830,783)

NET LOSS

(2,478,906)

(1,226,395)

(5,570,980)

(1,677,172)

PREFERRED STOCK DIVIDENDS

(282,900)

(254,008)

(555,359)

(499,453)

NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS

$ (2,761,806)

$ (1,480,403)

$ (6,126,339)

$ (2,176,625)

BASIC LOSS PER SHARE

$ (0.18)

$ (0.24)

$ (0.41)

$ (0.39)

DILUTED LOSS PER SHARE

$ (0.18)

$ (0.24)

$ (0.41)

$ (0.39)

WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC

^[1]

15,265,398

6,191,240

14,863,185

5,651,634

WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED

^[1]

15,265,398

6,191,240

14,863,185

5,651,634

[1]	Shares outstanding for the three and six months ended June 30, 2025 have been restated for the 1-for-3 reverse stock split effective January 12, 2026. See Note 1. Summary of Significant Accounting Policies.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (5,570,980)	$ (1,677,172)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	846	4,128
Amortization of debt discount	34,331	(0)
Credit losses	30,000	112,727
Loss on disposal of assets	0	12,593
Loss on issuance / change in fair value of derivative liability	442,772	0
Interest included in line of credit	4,165,687	2,579,283
Share issuance and compensation expense	1,031,135	97,500
(Increase) decrease in:
Accounts receivable	(1,684,667)	(3,371,656)
Right of use – assets	109,132	133,771
Prepaids and other current assets	(125,917)	(22,364)
Increase (decrease) in:
Accounts payable and accrued expense	339,108	119,855
Accrued related parties compensation	626,247	112,468
Accrued interest	46,177	137,211
Right of use – liabilities	(112,520)	(127,347)
Net cash used in operating activities	(668,649)	(1,889,003)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of SBA loans	(4,386)	(4,386)
Net (payments) proceeds on line of credit	(236,646)	1,464,919
Proceeds from convertible notes payable	1,113,889	0
Payments of debt issuance costs	(195,089)	0
Payments on note payable	(110,000)	(150,000)
Payment of dividends on preferred stock	0	(50,000)
Net cash provided by financing activities	567,768	1,260,533
NET DECREASE IN CASH	(100,881)	(628,470)
CASH, BEGINNING OF PERIOD	318,535	1,188,185
CASH, END OF PERIOD	217,654	559,715
SUPPLEMENTARY DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the year for interest	6,283	6,685
*NON-CASH INVESTING AND FINANCING ACTIVITIES:**
Common stock issued upon conversion of preferred stock	0	4,423
Dividends on preferred stock, including accrued dividends on preferred stock	590,468	514,608
Common stock issued upon conversion of accrued salaries	4,718,234	0
Promissory notes payable issued in settlement of accrued salaries	350,000	0
Discount on convertible notes payable	963,850	0
Recognition of derivative liability upon issuance of convertible notes	1,913,228	0
Recognition of derivative liability related to commitment shares	12,621	0
Change in fair value of derivative liability	$ (838,720)	$ 0

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash	$ 217,654	$ 318,535
Accounts receivable, net	23,725,621	22,070,954
Prepaid and other current assets	352,603	203,876
Total current assets	24,295,878	22,593,365
Property and equipment, net	2,107	2,953
Land	540,000	540,000
Goodwill	5,666,608	5,666,608
Right of use – assets, net	105,726	214,858
Due from related party	4,979	4,979
Other assets	65,539	64,182
Total assets	30,680,837	29,086,945
Current liabilities
Accounts payable and accrued expense	1,869,755	1,760,765
Accrued expenses – related parties	232,393	4,645,826
Accrued interest	769,180	707,574
Right of use – operating lease liabilities	108,980	178,524
Notes payable – current portion	15,717	125,774
Notes payable related parties – current portion	1,085,703	1,085,703
Line of credit	21,138,949	17,209,908
Convertible notes payable, net of debt discounts of $1,061,124 and $131,705, respectively – current portion	302,765	118,295
Derivative liabilities	1,087,129	0
Total current liabilities	26,610,571	25,832,369
Other liabilities
Operating lease liability – long term	0	42,976
Notes payable	137,115	138,773
Notes payable – related parties	350,000	0
Total liabilities	27,097,686	26,014,118
Mezzanine equity
Total Mezzanine Equity	1,827,857	5,542,488
Stockholders' equity/(deficit)
Common Stock: 300,000,000 shares authorized, $0.001 par value; 15,283,191 and 13,701,698 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively	15,283	13,702
Additional paid-in capital	77,763,975	72,021,848
Unearned stock-based compensation	(241,066)	(579,215)
Accumulated deficit	(85,617,319)	(79,490,980)
Total stockholders’ equity/(deficit)	1,755,294	(2,469,661)
Total liabilities, mezzanine equity and stockholders’ equity/(deficit)	30,680,837	29,086,945
Redeemable Series N Senior Convertible Preferred Stock [Member]
Mezzanine equity
Preferred Stock Value	0	3,802,010
Redeemable Series X Senior Convertible Preferred Stock [Member]
Mezzanine equity
Preferred Stock Value	1,827,857	1,740,478
Series F-1 Preferred Stock [Member]
Stockholders' equity/(deficit)
Preferred Stock Value	15,500	15,500
Series L Preferred Stock [Member]
Stockholders' equity/(deficit)
Preferred Stock Value	1,277,972	1,277,972
Series N Senior Convertible Preferred Stock [Member]
Stockholders' equity/(deficit)
Preferred Stock Value	4,052,591	0
Series Y Senior Convertible Preferred Stock [Member]
Stockholders' equity/(deficit)
Preferred Stock Value	$ 4,488,358	$ 4,271,512