Company: CPSS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001683168-25-003436
Chunk: 7

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 7
---
 include anticipated
credit losses in our computation of the level yield, the computed level yield is materially lower than the average contractual rate applicable
to the receivables. Because our initial recorded value is fixed as the price we pay for the receivable, rather than as the contractual
principal balance, we do not record acquisition fees as an amortizing asset related to the receivables, nor do we capitalize costs of
acquiring the receivables. Rather we recognize the costs of acquisition as expenses in the period incurred.

Other Income

The following table presents the primary components
of Other Income for the three-month periods ending March 31, 2025, and 2024:

    Schedule of other income 

    Three Months Ended 

    March 31, 

    2025  
    2024 

    (In thousands) 
  
    Origination and servicing fees from third party receivables 
    $1,431  
    $2,144 
  
    Sales tax refunds 
     –  
     289 
  
    Other 
     10  
     23 
  
    Other income for the period 
    $1,441  
    $2,456 

Leases

The Company has operating leases for corporate
offices, equipment, software and hardware. The Company has entered into operating leases for the majority of its real estate locations,
primarily office space. These leases are generally for periods of three to seven years with various renewal options. The depreciable life
of leased assets is limited by the expected lease term. Leases with an initial term of 12 months or less are not recorded on the balance
sheet and the related lease expense is recognized on a straight-line basis over the lease term.

     9 

CONSUMER PORTFOLIO SERVICES, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

The following table presents
the supplemental balance sheet information related to leases:

    Schedule of supplemental balance sheet information related to leases 

    March 31,  
    December 31, 

    2025  
    2024 

    (In thousands) 
  
    Operating Leases 

    Operating lease right-of-use assets 
    $51,093  
    $51,093 
  
    Less: Accumulated amortization right-of-use assets 
     (32,850)