Company: CPSS
Filing Date: 2025-10-28
Form Type: DEF 14A
Source: 0001683168-25-007815
Chunk: 18

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-10-28
Form: DEF 14A
Chunk 18
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 practices. |

We expect that the Share Limit would allow us to continue our planned stock
option or other equity award practices in the future and to be able to support our planned growth, address market competition and react
to stock price fluctuations in granting future stock options and other equity awards. Accordingly, our Board believes that the proposed
Share Limit is reasonable and prudent.

Overhang and Burn Rate

When approving the 2025 Equity Plan, the Board considered our overhang and the burn rate with respect to the stock options that have been granted historically.

Overhang is equal to the total number of stock options outstanding, plus the total number of shares available for grant under our 2006 Equity Plan, divided by the sum of the total number of shares of Common Stock issued and outstanding, the number of stock options outstanding and the total number of shares available for grant under our 2006 Equity Plan. The following table sets forth information regarding outstanding stock options granted, as ofthe Record Date, under our existing 2006 Equity Plan, which will terminate on April 27, 2026, and our overhang as of such date:

| Total shares underlying outstanding stock options                                                                                        |       6,227,631 |
| Weighted-average exercise price of outstanding stock options                                                                             | $6.43 per share |
| Weighted average remaining contractual life of outstanding stock options                                                                 |      3.41 years |
| Total shares available for grant under the 2006 Equity Plan as of the Record Date                                                        |       1,501,330 |
| Total shares available for grant under the 2006 Equity Plan as of the Record Date, as a percentage of outstanding shares of Common Stock |            6.8% |

Based on the number of outstanding stock options as ofthe Record Date under our existing 2006 Equity Incentive Plan, our overhang would be 25.9% after taking into account the expiration of the 2006 Equity Plan in April 2026 and the additional shares authorized for issuance under the 2025 Equity Plan. We will not grant any new awards under the 2006 Equity Incentive Plan between the Record Date and the Effective Date. If any shares are issued, they will be subtracted from the new plan reserve.

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The burn rate is equal to the total number of Awards granted in a calendar year divided by the weighted average number of shares of Common Stock outstanding during the year. The following table provides data on our burn rate under the 2006 Equity Plan for