Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 294

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1A
Chunk 294
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 the CPS 2006 Long-Term Equity Incentive Plan (the “2006 Plan”) pursuant to which our Board of
Directors, or a duly-authorized committee thereof, may grant stock options, restricted stock, restricted stock units and stock appreciation
rights to our employees or employees of our subsidiaries, to directors of the Company, and to individuals acting as consultants to the
Company or its subsidiaries. In June 2008, May 2012, April 2013, May 2015, July 2018 and again in November 2021, the shareholders of the
Company approved an amendment to the 2006 Plan to increase the maximum number of shares that may be subject to awards under the 2006 Plan
to 5,000,000, 7,200,000, 12,200,000, 17,200,000, 19,200,000 and 22,200,000, respectively, in each case plus shares authorized under prior
plans and not issued. Options that have been granted under the 2006 Plan and a previous plan approved in 1997 have been granted at an
exercise price equal to (or greater than) the stock’s fair value at the date of the grant, with terms generally of 7-10 years and
vesting generally over 4-5 years.

There were no stock options
granted during the years ended December 31, 2024 and 2023. The per share weighted-average fair value of stock options granted during the
year ended December 31 2022 was $5.42.
That fair value was estimated using a binomial option pricing model using the weighted average assumptions noted in the following table.
We use historical data to estimate the expected term of each option. The volatility estimate is based on the historical and implied volatility
of our stock over the period that equals the expected life of the option. Volatility assumptions ranged from 75%
to 80%
for 2022. The risk-free interest rate is based on the yield on a U.S. Treasury bond with a maturity comparable to the expected life of
the option. The dividend yield is estimated to be zero based on our intention not to issue dividends for the foreseeable future.

    Schedule of assumptions for stock options 

    Year Ended
                                                                               December
                                            31, 

    2022 
  
    Expected life (years) 
     4.00 
  
    Risk-free interest rate 
     2