Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 127

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1
Chunk 127
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Contracts") originated by licensed motor
vehicle dealers (“Dealers”) located throughout the United States. Customers located in Texas, Ohio, California, Illinois, Florida,
and Georgia represented 7.8%, 7.3%, 6.0%, 5.7%, 5.4%, and 4.5%. respectively, of contracts purchased during 2024 compared with 7.1%, 6.2%,
6.0%, 6.9%, 5.4%, and 4.0% respectively in 2023. No other state had a concentration in excess of 4.5% in 2024. We specialize in contracts
with vehicle purchasers who generally would not be expected to qualify for traditional financing provided by commercial banks or automobile
manufacturers’ captive finance companies.

We are subject to various
regulations and laws as they relate to the extension of credit in consumer credit transactions. Failure to comply with such laws and regulations
could have a material adverse effect on the Company.

Principles of Consolidation

The Consolidated Financial
Statements include the accounts of Consumer Portfolio Services, Inc. and its wholly-owned subsidiaries, certain of which are special
purpose subsidiaries (“SPS”), formed to accommodate the structures under which we purchase and securitize our contracts.
The Consolidated Financial Statements also include the accounts of CPS Leasing, Inc., an 80% owned subsidiary. All significant intercompany
balances and transactions have been eliminated in consolidation.

Cash and Cash Equivalents

For purposes of the statements
of cash flows, we consider all highly liquid debt instruments with original maturities of three months or less to be cash equivalents.
Cash equivalents consist of cash on hand and due from banks and money market accounts. Substantially all of our cash is deposited at three
financial institutions. We maintain cash due from banks in excess of the banks’ insured deposit limits. We do not believe we are exposed
to any significant credit risk on these deposits. As part of certain financial covenants related to debt facilities, we are required to
maintain a minimum unrestricted cash balance. As of December 31, 2024, our unrestricted cash balance was $11.7 million, which exceeded
the minimum amounts required by our financial covenants.

Finance Receivables

Finance receivables, which
we have the intent and ability to hold for the foreseeable future or until maturity or payoff, are presented at cost. All finance receivable
contracts are held for investment.