Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 192

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1A
Chunk 192
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 interest we pay to finance our managed portfolio. As a result, an increase in prevailing
interest rates could cause us to receive less excess spread cash flows on automobile contracts, and thus could adversely affect our earnings
and cash flows. See “Quantitative and Qualitative Disclosures About Market Risk - Interest Rate Risk.”

Risks Related to Our Common Stock

Our Common Stock Is Thinly-Traded.

Our stock is thinly-traded,
which means investors will have limited opportunities to sell their shares of common stock in the open market. Limited trading of our
common stock also contributes to more volatile price fluctuations. Because there historically has been low trading volume in our common
stock, there can be no assurance that our stock price will not decline as additional shares are sold in the public market. As of December
31, 2024, our directors and executive officers collectively owned 13.0 million shares of our common stock, or approximately 61% of total
shares outstanding.

We Do Not Intend to Pay Dividends on Our Common Stock.

We have never declared or
paid any cash dividends on our common stock. We currently intend to retain any future earnings and do not expect to pay any dividends
in the foreseeable future.

Item 1B.  Unresolved Staff Comments

Not applicable.

Item 1C.  Cybersecurity

Risk Management and Strategy 

Our information security policies
and processes are designed to assess, identify, and manage material risks from cybersecurity threats, including protecting the security
and confidentiality of consumer information. We use various tools and strategies to identify and assess material risks from cybersecurity
threats. We conduct ongoing cybersecurity gap analysis and risks assessments, vulnerability testing, and penetration testing. The cybersecurity
risk assessments, vulnerability testing, and penetration testing are designed to identify internal and external risks to the security
of our information systems.

We also actively monitor our
systems and connections for abnormal activity, including malicious phishing attempts. This includes the use of intrusion detection systems,
log analysis, and real-time monitoring of critical systems. We have an incident reporting portal available to all employees to submit
any issues they suspect may pose a risk to our information technology (“IT”) systems and security.

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We use the results of the
above-described tools and strategies to assess the sufficiency of the safeguards in place to manage material risks from cybersecurity
threats, to enhance such safeguards, or implement new safeguards, as necessary. We have several safeguards in place to manage material
risks from cybersecurity threats. We