Form 4: Cardiff Lexington CFO Boosts Stake with Stock Awards

Cardiff Lexington Corp's Chief Financial Officer, Matthew T. Shafer, increased his direct beneficial ownership of common stock to 35,000 shares through a preferred stock conversion and a restricted stock award.

Summary

• Matthew T. Shafer, Chief Financial Officer of Cardiff Lexington Corp (CDIX), increased his direct beneficial ownership of common stock.
• On November 19, 2025, 5,000 shares of Series I Preferred Stock, previously received as partial compensation on January 31, 2024, automatically converted into 10,000 shares of Common Stock.
• On December 11, 2025, Shafer was granted a restricted stock award for 25,000 shares of Common Stock under the company's 2024 Equity Incentive Plan.
• Following these transactions, Shafer directly beneficially owns 35,000 shares of Common Stock.

Sentiment

Score: 7

Explanation: The filing indicates an increase in the CFO's equity ownership through compensation and awards, which generally aligns management interests with shareholders and is a positive signal for executive retention and motivation.

Positives

• Increased alignment of management's interests with shareholders through increased equity ownership by the Chief Financial Officer.
• The grant of restricted stock awards indicates the company's use of equity incentives to retain and motivate key executives.
• The conversion of preferred stock into common stock simplifies the capital structure for the shares held by the CFO.

Risks

• The 25,000 restricted stock award is subject to a vesting condition on December 11, 2026, contingent on the CFO's continuous service, posing a risk to the CFO if employment ceases before vesting.

Future Outlook

The 25,000 restricted shares of Common Stock granted to the CFO are scheduled to vest in full on December 11, 2026, provided the CFO maintains continuous service with the company.

Industry Context

The use of equity compensation, such as preferred stock conversions and restricted stock awards, is a common practice across industries to incentivize and retain key executives, aligning their long-term interests with those of shareholders.

Comparison to Industry Standards

• The grant of restricted stock awards with a vesting period is a standard practice in executive compensation, comparable to plans at many publicly traded companies.
• The conversion of preferred stock into common stock as part of compensation is also a recognized method for executive equity participation.

Corporate Governance

Related Party Transactions

• The transactions involve the Chief Financial Officer acquiring securities from the issuer (Cardiff Lexington Corp), which are considered related party transactions typical for executive compensation.

Stakeholder Impact

• Shareholders: Increased equity ownership by the CFO can align management's interests with shareholders, potentially leading to better long-term decision-making.
• Employees: The use of an Equity Incentive Plan signals the company's commitment to rewarding and retaining key personnel.

Next Steps

• The 25,000 restricted shares of Common Stock are expected to vest on December 11, 2026, subject to the CFO's continuous service.

Key Dates

Keywords

Cardiff Lexington Corp, CDIX, Matthew T. Shafer, CFO, Form 4, Beneficial Ownership, Common Stock, Series I Preferred Stock, Restricted Stock Award, Equity Incentive Plan, Executive Compensation