Cardiff Lexington Introduces Super-Voting Series A-1 Preferred Stock

summarizeSummary

Cardiff Lexington created a new Series A-1 Preferred Stock with super-voting rights — two shares control 25% of all other votes plus one. The shares have no economic interest and convert to common stock if transferred.

check_boxKey Events · Corporate Governance and Compliance · CDIX

• Super-Voting Preferred Stock Created

  Two shares of Series A-1 Preferred Stock were designated, each carrying votes equal to 25% of all other equity securities plus one vote — giving the holder effective control over roughly 20% of total voting power.

• No Economic Interest

  The Series A-1 shares have no dividend rights and no economic interest in the company; their only value is the voting power and a $250 per share liquidation preference.

• Automatic Conversion on Transfer

  Any transfer of Series A-1 shares to a non-affiliate automatically converts them into one share of common stock each, locking the super-voting power to the original holder.

• Distressed Financial Backdrop

  The designation comes weeks after Q2 2026 results showed a going-concern warning, a 23% revenue decline, a $5.57M net loss, and only $218K in cash.

auto_awesomeAnalysis · CDIX · Industrial Applications And Services

Cardiff Lexington has designated two shares of Series A-1 Preferred Stock, each carrying voting power equal to 25% of all other equity securities plus one vote. This gives the holder of just two shares effective control over roughly 20% of the total vote, a governance structure that can entrench management or a single investor. The shares have no economic interest and convert to common stock upon transfer to a non-affiliate, meaning the voting power is tied to a specific holder. Against the backdrop of a going-concern warning, a $5.57M quarterly loss, and only $218K in cash, this move raises questions about who controls the company and why such concentrated voting power is being created now.