Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 172

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1A
Chunk 172
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We are subject to various risks that may materially harm our business,
prospects, financial condition and results of operations. An investment in our common stock is speculative and involves risk. In evaluating
an investment in shares of our common stock, you should carefully consider the risks described below, together with the other information
included in this Annual Report on Form 10-K.

The risks described below are not the only risks we face. If any
of the events described in the following risk factors actually occurs, or if additional risks and uncertainties later materialize that
are not presently known to us or that we currently deem immaterial, then our business, prospects, results of operations and financial
condition could be materially adversely affected. In that event, the trading price of our common stock could decline, and you may lose
all or part of your investment in our shares. The risks discussed below include forward-looking statements, and our actual results may
differ substantially from those discussed in these forward-looking statements. See "Cautionary Note Regarding Forward-Looking Statements."

 16 

Risks Related to Our Business

We Require a Substantial Amount of Cash to Service Our Substantial
Debt.

To service our existing substantial
indebtedness, we require a significant amount of cash. Our ability to generate cash depends on many factors, including our successful
financial and operating performance. Our financial and operational performance depends upon a number of factors, many of which are beyond
our control. These factors include, without limitation:

·the economic and competitive conditions in the asset-backed securities market;

·the performance of our current and future automobile contracts;

·the performance of our residual interests from our securitizations and warehouse credit facilities;

·any operating difficulties or pricing pressures we may experience;

·our ability to obtain credit enhancement for our securitizations;

·our ability to establish and maintain dealer relationships;

·the passage of laws or regulations that affect us adversely;

·our ability to compete with our competitors; and

·our ability to acquire and finance automobile contracts.

Depending upon the outcome
of one or more of these factors, we may not be able to generate sufficient cash flow from operations or obtain sufficient funding to satisfy
all of our obligations. Such factors may result in our being unable to pay our debts timely or as agreed. If we were unable to pay our
debts, we would be required to pursue one or more alternative strategies, such as selling assets, refinancing or restructuring our indebtedness
or selling additional equity