Company: CPSS
Filing Date: 2025-06-30
Form Type: 11-K
Source: 0001683168-25-004829
Chunk: 8

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-06-30
Form: 11-K
Chunk 8
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 loans are recorded as distributions
based on the terms of the Plan agreement.

| (e) | Administrative Expenses |

The Plan and the Plan Sponsor share
plan expenses. Certain direct investment expenses, such as record keeping fees, brokerage fees, loan, withdrawal or distribution processing
fees are deducted from participants’ accounts. During the years ended December 31, 2024, and 2023, $136,850 and $126,916, respectively,
in Plan investment and administrative expenses were paid through the use of forfeitures.

| (f) | Use of Estimates |

The Plan Administrator has made a number
of estimates and assumptions relating to the reporting of assets and liabilities to prepare these financial statements in conformity with
GAAP. Accordingly, actual results may differ from those estimates.

| (3) | Investments |

In accordance with GAAP, the Plan
uses a hierarchy for measuring the fair value of all financial assets and liabilities that are being measured and reported at fair value
on a recurring and non-recurring basis. Fair value is measured in levels, which are described in more detail below, and are determined
based on the observability and reliability of the assumptions used to determine fair value. Should the inputs used to measure fair value
fall into different levels of the fair value hierarchy, the level in the fair value hierarchy within which the fair value measurement
in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Level 1: Valuations for assets and
liabilities traded in active exchange markets. Valuations are obtained from readily available pricing sources for market transactions
involving identical assets or liabilities.

Level 2: Valuations for assets and
liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or
comparable assets or liabilities.

Level 3: Valuations for assets and
liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models, and similar
techniques, and not based on

market exchange, dealer or broker
traded transactions. These valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets
or liabilities.

| 8 |

<div align='center'>CONSUMER PORTFOLIO SERVICES, INC. 401(K) PLAN

Notes to Financial Statements

December 31, 2024, and 2023</div>

| (3) | Investments (continued) |

Certain investments in the Plan