Consumer Portfolio Services (CPSS) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01We Require a Substantial Amount of Cash to Service Our Substantial Debt
2. 02We Need Substantial Liquidity to Operate Our Business
3. 03Periods of Significant Losses
4. 04Our Results of Operations Will Depend on Our Ability to Secure and Maintain Adequate Credit and Warehouse Financing on Favorable Terms
5. 05Our Results of Operations Will Depend on Our Ability to Securitize Our Portfolio of Automobile Contracts
6. 06Our Results of Operations Will Depend on Cash Flows from Our Residual Interests in Our Securitization Program and Our Warehouse Credit Facilities
7. 07Our Results of Operations May be Affected by Changing Economic Conditions
8. 08If Interest Rates Rise, Our Results of Operations May Be Impaired
9. 09If We Are Unable to Compete Successfully with our Competitors, Our Results of Operations May Be Impaired
10. 10If Our Dealers Do Not Submit a Sufficient Number of Suitable Automobile Contracts to Us for Purchase, Our Results of Operations May Be Impaired
11. 11If a Significant Number of Our Automobile Contracts Experience Defaults, Our Results of Operations May Be Impaired
12. 12If We Lose Servicing Rights on Our Portfolio of Automobile Contracts, Our Results of Operations Would Be Impaired
13. 13If We Lose Key Personnel, Our Results of Operations May Be Impaired
14. 14If We Fail to Comply with Regulations, Our Results of Operations May Be Impaired
15. 15Existing law, regulations and interpretations may change in ways that increase our costs of compliance
16. 16Risk Retention Rules May Limit Our Liquidity and Increase Our Capital Requirements
17. 17If We Experience Unfavorable Litigation Results, Our Results of Operations May Be Impaired
18. 18Negative Publicity Associated with Litigation, Governmental Investigations, Regulatory Actions, and other Public Statements Could Damage Our Reputation
19. 19If We Experience Problems with Our Originations, Accounting or Collection Systems, Our Results of Operations May Be Impaired
20. 20A Breach in the Security of Our Systems Could Result in the Disclosure of Confidential Information, Subject us to Liability
21. 21These risks may increase in the future as we continue to increase our mobile-payment and other internet-based product offerings and expand our use of web or cloud-based products and applications
22. 22Because We Are Subject to Many Restrictions in Our Existing Credit Facilities and Securitization Transactions, Our Ability to Pay Dividends or Engage in Specified Transactions May Be Impaired

Risks Related to Fair Value Accounting

1. 23If Actual Results for Our Receivables Materially Deviate from Our Estimates, We May Be Required to Reduce the Interest Income We Recognize for Some or All of the Receivables Measured at Fair Value
2. 24If Actual Results for Our Receivables Materially Deviate from Our Estimates, We May Be Required to Reduce the Recorded Value for Some or All of the Receivables Measured at Fair Value
3. 25If Actual Market Conditions Indicate That the Amount a Market Participant Would Pay for Our Receivables is Materially Lower Than Our Recorded Value, We May Be Required to Reduce the Recorded Value for Some or All of the Receivables Measured at Fair Value

Risks Related to General Factors

1. 26If The Economy of All or Certain Regions of the United States Falls into Recession, Our Results of Operations May Be Impaired
2. 27A Pandemic or Other Public Health Emergency Could Have Adverse Effects
3. 28Our Results of Operations May Be Impaired as a Result of Natural Disasters
4. 29Effect of Social, Economic and Other Factors on Losses
5. 30If an Increase in Interest Rates Results in a Decrease in Our Cash Flows from Excess Spread, Our Results of Operations May Be Impaired

Risks Related to Our Common Stock

1. 31Our Common Stock Is Thinly-Traded