Company: CPSS
Filing Date: 2025-06-30
Form Type: 11-K
Source: 0001683168-25-004829
Chunk: 7

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-06-30
Form: 11-K
Chunk 7
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ited accounts totaled $4,773
and $8,745, respectively.

| (j) | Plan Termination |

Although it has not expressed any
intent to do so, the Plan Sponsor has the right under the Plan to terminate the Plan subject to the provisions of ERISA. In the event
of the Plan’s termination, participants will become 100% vested in their accounts.

| (2) | Significant Accounting Policies |

| (a) | Basis of Accounting |

The financial statements of the Plan
have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States
of America (“GAAP”). Benefits are recorded when paid.

| (b) | Subsequent Events |

The Plan Administrator evaluated subsequent
events through June 30, 2025, the date the financial statements were available to be issued.

| (c) | Investments |

Publicly traded securities, including CPS, Inc. common stock, are
carried at fair value based on published market quotations. Shares of registered investment companies are valued at the published net
asset value of the underlying assets at year end. Purchases and sales of investments are recorded on a trade date basis. Dividends are
recorded on the ex dividend date. Interest income is recorded on the accrual basis.

Realized gains and losses on investments
are based on the fair value of the asset at the beginning of the year or at the time of purchase for assets purchased during the year
and the related fair value on the date investments are sold during the year.

The Plan invests in a guaranteed interest
contract (“GIC”), which is valued at contract value based on the underlying value of the account’s group annuity contract.
In the event that the underlying agreement in the Plan’s investment in fully benefit-responsive investment contract are fully or
partially terminated, participants will receive the liquidation value instead of the contract value.

| 7 |

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

Notes to Financial Statements

December 31, 2024, and 2023</div>

| (2) | Significant Accounting Policies (continued) |

| (c) | Investments (continued) |

The Plan Administrator does not anticipate
the full or partial termination of such agreement in the foreseeable future.

| (d) | Notes Receivable from Participants |

Notes receivable from participants
are measured at their unpaid principal balance plus any accrued but unpaid interest. Delinquent participant