Company: CPSS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001683168-25-003436
Chunk: 90

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part II, Item 1
Chunk 90
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The information provided under the caption “Legal
Proceedings,” Note 8 to the Unaudited Condensed Consolidated Financial Statements, included in Part I of this report, is incorporated
herein by reference.

Item 1A. Risk Factors

We remind the reader that risk factors are set
forth in Item 1A of our report on Form 10-K, filed with the U.S. Securities and Exchange Commission on March 12, 2025. Where we are aware
of material changes to such risk factors as previously disclosed, we set forth below an updated discussion of such risks. The reader should
note that the other risks identified in our report on Form 10-K remain applicable.

We have substantial indebtedness.

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, we completed a $50.0 million securitization of
residual interests from other previously issued securitizations. In March 2024, we completed another residual interest financing of our
residual interests from previously issued securitizations in the amount of $50.0 million. On March 20, 2025, we completed a new residual
interest financing of our residual interests from previously issued securitizations in the amount of $65.0 million. As of March 31, 2025,
all $165.0 million of the residual interest debt remains outstanding.

Our substantial indebtedness could adversely affect
our financial condition by, among other things:

·increasing our vulnerability to general adverse economic and industry conditions;

·requiring us to dedicate a substantial