Company: CPSS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001683168-25-003436
Chunk: 82

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 2
Chunk 82
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 other indebtedness of ours, but only if such other event of default were to be
accompanied by acceleration of such other indebtedness. As of March 31, 2025, we were in compliance with all such financial covenants.

We have and will continue to
have a substantial amount of indebtedness. At March 31, 2025, we had approximately $3,300.0 million of debt outstanding. Such debt consisted
primarily of $2,743.3 million of securitization trust debt and $365.7 million of debt from warehouse lines of credit. Our securitization
trust debt has increased by $148.9 million while our warehouse lines of credit debt has decreased by $45.2 million since December 31,
2024 (each net of deferred financing costs). Since 2005, we have offered renewable subordinated notes to the public on a continuous basis,
and such notes have maturities that range from six months to 10 years. We had $27.5 million and $26.5 million in subordinated renewable
notes outstanding at March 31, 2025, and December 31, 2024, respectively. In June 2021, March 2024, and again on March 20, 2025, we completed
a securitization of residual interests from other previously issued securitizations in the amount of $50 million, $50 million, and $65
million, respectively. As of March 31, 2025, all $165.0 million of the residual interest debt remains outstanding.

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Although we believe we are
able to service and repay our debt, there is no assurance that we will be able to do so. If our plans for future operations do not generate
sufficient cash flows and earnings, our ability to make required payments on our debt would be impaired. If we fail to pay our indebtedness
when due, it could have a material adverse effect on us and may require us to issue additional debt or equity securities.

Item 4. Controls and Procedures

We maintain a system of internal controls and
procedures designed to provide reasonable assurance as to the reliability of our published financial statements and other disclosures
included in this report. As of the end of the period covered by this report, we evaluated the effectiveness of the design and operation
of such disclosure controls and procedures. Based upon that evaluation, the principal executive officer (Charles E. Bradley, Jr