Company: CPSS
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001683168-25-005901
Chunk: 20

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 8
Chunk 20
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,203 

     $  

    Incremental common shares attributable to exercise of outstanding options and warrants 
     2,287  
     3,000  
     2,584  
     3,230 

     $  

    Weighted average number of common shares used to compute diluted earnings per share 
     24,180  
     24,263  
     24,254  
     24,433 

If the anti-dilutive effects
of common stock equivalents were considered, shares included in the diluted earnings per share calculation for the three-month and six-month
period ended June 30, 2025, would have included an additional 1.6 million shares attributable to the exercise of outstanding options and
warrants. For the three-month and six-month periods ended June 30, 2024, 1.7 million shares, would be included in the diluted earnings
per share calculation.

(7) Income Taxes

We file numerous consolidated
and separate income tax returns with the United States and with many states. With few exceptions, we are no longer subject to U.S. federal,
state, or local examinations by tax authorities for years before 2015.

As of June 30, 2025, and December
31, 2024, we had no unrecognized tax benefits for uncertain tax positions. We do not anticipate that total unrecognized tax benefits will
significantly change due to any settlements of audits or expirations of statutes of limitations over the next 12 months.

The Company and its subsidiaries
file a consolidated federal income tax return and combined or stand-alone state franchise tax returns for certain states. We utilize the
asset and liability method of accounting for income taxes, under which deferred income taxes are recognized for the future tax consequences
attributable to the differences between the financial statement values of existing assets and liabilities and their respective tax bases.
Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those
temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in
income in the period that includes the enactment date.

     22 

CONSUMER PORTFOLIO SERVICES, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS

Deferred tax assets and liabilities
are recognized for the future tax consequences of events that