Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 1414

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 8
Chunk 1414
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CONSUMER PORTFOLIO SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Income tax expense for the
years ended December 31, 2024, 2023 and 2022 differs from the amount determined by applying the statutory federal rate to income before
income taxes as follows:

    Schedule of reconciliation of income taxes 

    Year Ended December 31, 

    2024  
    2023  
    2022 

    (In thousands) 
  
    Expense at federal tax rate 
    $5,760  
    $12,830  
    $24,401 
  
    State taxes, net of federal income tax effect 
     1,863  
     3,716  
     6,462 
  
    Stock-based compensation 
     (958) 
     (1,184) 
     (2,611)
  
    Non-deductible expenses 
     1,612  
     1,629  
     1,056 
  
    Net operating loss carryback 
     –  
     –  
     – 
  
    Effect of change in tax rate 
     –  
    –  
     – 
  
    Accounting method change 
     –  
     –  
     – 
  
    Other 
     (49) 
     (1,237) 
    902 
  
    Income tax expense 
    $8,228  
    $15,754  
    $30,210 

The tax effected cumulative
temporary differences that give rise to deferred tax assets and liabilities as of December 31, 2024 and 2023 are as follows:

    Schedule of deferred tax assets and liabilities 

    December 31, 

    2024  
    2023 

    (In thousands) 
  
    Deferred Tax Assets: 

    Finance receivables 
    $77  
    $895 
  
    Accrued liabilities 
     703  
     1,423 
  
    NOL carryforwards 
     256  
     400 
  
    Built in losses 
     753  
     1,383 
  
    Stock compensation 
     755  
     1,131 
  
    Lease liability 
     5,846