Company: CPSS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001683168-25-003436
Chunk: 154

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 154
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 million of debt from warehouse lines of credit. Our securitization
trust debt has increased by $148.9 million while our warehouse lines of credit debt has decreased by $45.2 million since December 31,
2024 (each net of deferred financing costs). Since 2005, we have offered renewable subordinated notes to the public on a continuous basis,
and such notes have maturities that range from six months to 10 years. We had $27.5 million and $26.5 million in subordinated renewable
notes outstanding at March 31, 2025, and December 31, 2024, respectively. In June 2021, we completed a $50.0 million securitization of
residual interests from other previously issued securitizations. In March 2024, we completed another residual interest financing of our
residual interests from previously issued securitizations in the amount of $50.0 million. On March 20, 2025, we completed a new residual
interest financing of our residual interests from previously issued securitizations in the amount of $65.0 million. As of March 31, 2025,
all $165.0 million of the residual interest debt remains outstanding.

Our substantial indebtedness could adversely affect
our financial condition by, among other things:

·increasing our vulnerability to general adverse economic and industry conditions;

·requiring us to dedicate a substantial portion of our cash flow from operations to payments on our indebtedness,
thereby reducing amounts available for working capital, capital expenditures and other general corporate purposes;

·limiting our flexibility in planning for, or reacting to, changes in our business and the industry in
which we operate;

·placing us at a competitive disadvantage compared to our competitors that have less debt; and

·limiting our ability to borrow additional funds.

Although we believe we are able to service and
repay such debt, there is no assurance that we will be able to do so. If we do not generate sufficient operating profits, our ability
to make required payments on our debt would be impaired. Failure to pay our indebtedness when due could have a material adverse effect.

 41 

Item 2. Unregistered Sales of Equity Securities
and Use of Proceeds

During the three months ended March 31, 2025,
we did not repurchase any shares from existing shareholders.

Item 5. Other Information

During the quarter
ended March 31,