SEC Filing Analysis: Cardiff Lexington Corp (CDIX)

Executive Summary

• Trading Significance: Medium
• Key Takeaway: The CEO, Director, and 10% owner, Alex H. Cunningham, converted preferred stock into over 10 million shares of common stock, substantially increasing his direct ownership.
• Market Impact: Neutral, as this is a non-cash conversion rather than an open-market transaction, but it simplifies the insider's ownership structure and aligns him more with common stockholders.

Company Information

Field	Value
Company	Cardiff Lexington Corp
Ticker Symbol	CDIX
CIK	0000811222
Industry	SERVICES-OFFICES & CLINICS OF DOCTORS OF MEDICINE

Insider Information

Field	Value
Name	Alex H. Cunningham
CIK	0002013098
Title/Position	Chief Executive Officer
Relationship	Director, Officer, 10% Owner

Transaction Details

Field	Value
Form Type	4
Transaction Date	2025-11-19
Transaction Code	C (Conversion of derivative security)
Security Type	Common Stock
Shares Involved	10,073,092
Price Per Share	$0.00
Total Value	$0
Shares Owned After	10,073,096
Ownership Type	Direct

Financial Impact Assessment

Impact Evaluation

• Ownership Concentration: This transaction represents a massive increase in the CEO's direct holdings of common stock. While not a cash purchase, it consolidates his ownership from preferred shares into the primary equity class of the company.
• Transaction Significance: The significance is medium. The lack of a cash price prevents it from being a strong bullish signal. However, the sheer volume of shares and the simplification of the insider's holdings are notable events that align the CEO's interests more directly with common shareholders.

Market Impact Analysis

Stock Impact Prediction

• Direction: Neutral
• Reasoning: The transaction is a conversion of existing derivative securities, not a new investment of capital into the company. It does not reflect a new decision to buy at a specific market price.

Volume & Sentiment

• Expected Volume Impact: Minimal to none, as this was not an open-market transaction.
• Sentiment Indicator: Neutral. The move simplifies the capital structure and the insider's holdings, which can be viewed as a minor positive, but it does not provide a strong market signal.

Additional Context

Transaction Notes

• Special Circumstances: This transaction is the culmination of a series of events reported in the filing. Earlier in the year, the insider exchanged different series of preferred stock and later converted them into common stock. According to footnote F6, this was an automatic conversion of all remaining Series I Preferred Stock. Each share of Series I Preferred Stock was convertible into two shares of Common Stock (Footnote F7).

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Important Disclaimer

This analysis is for informational and educational purposes only and is NOT investment advice.

The information presented is based on publicly available SEC filings and should not be construed as a recommendation to buy, sell, or hold any securities. Past performance does not guarantee future results. All investments carry risk, including the potential loss of principal.

Always consult with a qualified financial advisor before making any investment decisions.

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Data Sources:

• SEC EDGAR Filings (Official)
• Analysis Generated: 2025-12-15

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This post is automated and based on publicly available SEC EDGAR filings. All data is sourced directly from official SEC databases.