Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 31

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1
Chunk 31
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izations;

·satisfy working capital requirements and pay operating expenses;

·pay taxes; and

·pay interest expense.

 17 

Historically we have matched our liquidity needs
to our available sources of funding by reducing our acquisition of new automobile contracts, at times to merely nominal levels. There
can be no assurance that we will continue to be successful with that strategy.

Periods of Significant Losses.

From time to time throughout
our history we have incurred net losses, most recently over the period beginning with the quarter ended September 30, 2008 and ending
with the quarter ended September 30, 2011. We were adversely affected by the economic recession affecting the United States as a whole,
for a time by increased financing costs and decreased availability of capital to fund our purchases of automobile contracts, and by a
decrease in the overall level of sales of automobiles and light trucks. Similar periods of losses began in the quarter ended March 31,
1999 through the quarter ended December 31, 2000 and also from the quarter ended September 30, 2003 through the quarter ended March 31,
2005.

We expect to earn quarterly
profits during 2025; however, there can be no assurance as to that expectation. Our expectation of profitability is a forward-looking
statement. We discuss the assumptions underlying that expectation under the caption “Cautionary Note Regarding Forward-Looking Statements”
in this report. We identify important factors that could cause actual results to differ, generally in the “Risk Factors” section
of this report, and also under the caption “Cautionary Note Regarding Forward-Looking Statements.” One reason for our expectation
is that we have had positive net income in each of the thirteen fiscal years ended December 31, 2024, although not in every quarter within
that period.

Our Results of Operations Will Depend on Our Ability
to Secure and Maintain Adequate Credit and Warehouse Financing on Favorable Terms.

We depend on various financing
sources, including credit facilities, our securitization program and other secured and unsecured debt issuances, to finance our business
operations. Historically, our primary sources of day-to-day liquidity have been our warehouse credit facilities, in which we sell and
contribute automobile contracts, as often as twice a week, to special-purpose subsidiaries, where they are "warehoused" until
they are financed on a long-term basis through the issuance and sale of asset-backed notes. Upon sale of the notes,