Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 540

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1C
Chunk 540
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     – 
  
    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  
     883 
  
    Other 
     185  
     – 
  
    Total deferred tax assets 
    $8,575  
    $6,115 

    Deferred Tax Liabilities: 

    Pension accrual 
    $(2,015) 
    $(1,217)
  
    Lease right-of-use assets 
     (5,301) 
     (803)
  
    Furniture and equipment and other 
     (249) 
     (359)
  
    Total deferred tax liabilities 
     (7,565) 
     (2,379)
  
    Net deferred tax asset 
    $1,010  
    $3,736 

     F-28 

CONSUMER PORTFOLIO SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

We acquired certain net operating
losses and built-in loss assets as part of our acquisitions of MFN Financial Corp. (“MFN”) in 2002 and TFC Enterprises, Inc.
(“TFC”) in 2003. Moreover, both MFN and TFC have undergone an ownership change for purposes of Internal Revenue Code (“IRC”)
Section 382. In general, IRC Section 382 imposes an annual limitation on the ability of a loss corporation (that is, a corporation with
a net operating