Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 175

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1A
Chunk 175
---
 If we are unable to maintain warehouse or securitization financing on acceptable terms, we might
curtail or cease our purchases of new automobile contracts, which could lead to a material adverse effect on our results of operations,
financial condition and liquidity.

Our Substantial Indebtedness Could Adversely Affect Our Financial
Health and Prevent Us From Fulfilling Our Obligations Under Our Existing Indebtedness

We currently have and will
continue to have a substantial amount of outstanding indebtedness. At December 31, 2024, we had approximately $3,131.0 million of debt
outstanding. Such debt consisted primarily of $2,594.4 million of securitization trust debt, and also included $410.9 million of warehouse
lines of credit, $99.2 million of residual interest financing debt and $26.5 million in subordinated renewable notes. Our ability to make
payments of principal or interest on, or to refinance, our indebtedness will depend on our future operating performance, and our ability
to enter into additional credit facilities and securitization transactions as well as other debt financings, which, to a certain extent,
are subject to economic, financial, competitive, regulatory, capital markets and other factors beyond our control.

 18 

If we are unable to generate
sufficient cash flows in the future to service our debt, we may be required to refinance all or a portion of our existing debt or to obtain
additional financing. There can be no assurance that any refinancing will be possible or that any additional financing could be obtained
on acceptable terms. The inability to service or refinance our existing debt or to obtain additional financing would have a material adverse
effect on our financial position, liquidity and results of operations.

The degree to which we are leveraged creates risks,
including:

·we may be unable to satisfy our obligations under our outstanding indebtedness;

·we may find it more difficult to fund future credit enhancement requirements, operating costs, tax payments, capital expenditures
or general corporate expenditures;

·we may have to dedicate a substantial portion of our cash resources to payments on our outstanding indebtedness, thereby reducing
the funds available for operations and future business opportunities; and

·increasing our vulnerability to adverse general economic, industry and capital markets conditions.

·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