Cover Page
Cover Page - shares | 3 Months Ended | |
Dec. 31, 2022 | Feb. 06, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | HENNESSY ADVISORS, INC. | |
Entity Central Index Key | 0001145255 | |
Current Fiscal Year End Date | --09-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Address, State or Province | CA | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 7,573,859 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-36423 | |
Entity Address, Address Line One | 7250 Redwood Boulevard, Suite 200 | |
Entity Address, City or Town | Novato | |
Entity Address, Postal Zip Code | 94945 | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 68-0176227 | |
City Area Code | 415 | |
Local Phone Number | 899-1555 | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | HNNA | |
Title of 12(b) Security | Common stock, no par value | |
Security Exchange Name | NASDAQ | |
4.875% Notes due 2026 [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | HNNAZ | |
Title of 12(b) Security | 4.875% Notes due 2026 | |
Security Exchange Name | NASDAQ |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Current assets | ||
Cash and cash equivalents | $ 57,050 | $ 58,487 |
Investments in marketable securities, at fair value | 10 | 9 |
Investment fee income receivable | 2,075 | 2,051 |
Prepaid expenses | 762 | 853 |
Other accounts receivable | 257 | 257 |
Total current assets | 60,154 | 61,657 |
Property and equipment, net of accumulated depreciation of $2,106 and $2,057, respectively | 335 | 320 |
Operating lease right-of-use asset | 561 | 651 |
Management contracts | 81,012 | 80,868 |
Other assets | 157 | 156 |
Total assets | 142,219 | 143,652 |
Current liabilities | ||
Accrued liabilities and accounts payable | 1,331 | 3,320 |
Accrued management contract payment | 37 | 210 |
Operating lease liability | 369 | 367 |
Income taxes payable | 948 | 820 |
Total current liabilities | 2,685 | 4,717 |
Notes payable, net of issuance costs | 38,943 | 38,870 |
Long-term operating lease liability | 186 | 279 |
Net deferred income tax liability | 13,750 | 13,488 |
Total liabilities | 55,564 | 57,354 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity | ||
Common stock, no par value, 22,500,000 shares authorized; 7,573,706 shares issued and outstanding as of December 31, 2022, and 7,571,741 as of September 30, 2022 | 21,230 | 20,951 |
Retained earnings | 65,425 | 65,347 |
Total stockholders' equity | 86,655 | 86,298 |
Total liabilities and stockholders' equity | $ 142,219 | $ 143,652 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Property and equipment, accumulated depreciation | $ 2,106 | $ 2,057 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares authorized | 22,500,000 | 22,500,000 |
Common stock, shares issued | 7,573,706 | 7,571,741 |
Common stock, shares outstanding | 7,573,706 | 7,571,741 |
Statements of Income
Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue | ||
Total revenue | $ 6,145 | $ 8,534 |
Operating expenses | ||
Compensation and benefits | 1,858 | 2,262 |
General and administrative | 1,569 | 1,400 |
Fund distribution and other | 95 | 155 |
Sub-advisory fees | 969 | 1,877 |
Depreciation | 49 | 53 |
Total operating expenses | 4,540 | 5,747 |
Net operating income | 1,605 | 2,787 |
Interest expense | 563 | 508 |
Interest income | (467) | (2) |
Income before income tax expense | 1,509 | 2,281 |
Income tax expense | 390 | 368 |
Net income | $ 1,119 | $ 1,913 |
Earnings per share | ||
Basic | $ 0.15 | $ 0.26 |
Diluted | $ 0.15 | $ 0.25 |
Weighted average shares outstanding | ||
Basic | 7,572,454 | 7,472,680 |
Diluted | 7,581,157 | 7,522,686 |
Cash dividends declared per share | $ 0.14 | $ 0.14 |
Investment advisory fees [Member] | ||
Revenue | ||
Total revenue | $ 5,654 | $ 7,938 |
Shareholder service fees [Member] | ||
Revenue | ||
Total revenue | $ 491 | $ 596 |
Statements of Changes in Stockh
Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | 2021 Dividend Reinvestment And Stock Purchase Plan [Member] | Common Stock [Member] | Common Stock [Member] 2021 Dividend Reinvestment And Stock Purchase Plan [Member] | Retained Earnings [Member] |
Beginning balance at Sep. 30, 2021 | $ 83,262 | $ 19,964 | $ 63,298 | ||
Beginning balance, Shares at Sep. 30, 2021 | 7,469,584 | ||||
Net income | 1,913 | 1,913 | |||
Dividends paid | (1,027) | (1,027) | |||
Repurchase of vested employee restricted stock for tax withholding | 10,000 | ||||
Repurchase of vested employee restricted stock for tax withholding | (37) | $ (31) | (6) | ||
Repurchase of vested employee restricted stock for tax withholding, Shares | (3,458) | ||||
Shares issued for auto-investments pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan | $ 2 | $ 2 | |||
Shares issued for auto-investments pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan, Shares | 193 | ||||
Shares issued for dividend reinvestment pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan | 19 | $ 19 | |||
Shares issued for dividend reinvestment pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan, Shares | 1,729 | ||||
Stock-based compensation | 388 | $ 388 | |||
Employee restricted stock forfeiture | (3) | (3) | |||
Ending balance at Dec. 31, 2021 | 84,517 | $ 20,339 | 64,178 | ||
Ending balance, shares at Dec. 31, 2021 | 7,478,048 | ||||
Beginning balance at Sep. 30, 2022 | 86,298 | $ 20,951 | 65,347 | ||
Beginning balance, Shares at Sep. 30, 2022 | 7,571,741 | ||||
Net income | 1,119 | 1,119 | |||
Dividends paid | (1,041) | (1,041) | |||
Shares issued for auto-investments pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan | 2 | $ 2 | |||
Shares issued for auto-investments pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan, Shares | 215 | ||||
Shares issued for dividend reinvestment pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan | $ 15 | $ 15 | |||
Shares issued for dividend reinvestment pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan, Shares | 1,750 | ||||
Stock-based compensation | 262 | $ 262 | |||
Ending balance at Dec. 31, 2022 | $ 86,655 | $ 21,230 | $ 65,425 | ||
Ending balance, shares at Dec. 31, 2022 | 7,573,706 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | ||
Net income | $ 1,119 | $ 1,913 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation | 49 | 53 |
Unrealized gain on marketable securities | (1) | |
Change in right-of-use asset and operating lease liability | (1) | 0 |
Amortization of note issuance costs | 73 | 55 |
Deferred income taxes | 262 | 570 |
Employee restricted stock forfeiture | 0 | (3) |
Stock-based compensation | 262 | 388 |
Change in operating assets and liabilities | ||
Investment fee income receivable | (24) | (31) |
Prepaid expenses | 91 | 225 |
Other accounts receivable | 0 | (111) |
Other assets | (1) | (11) |
Accrued liabilities and accounts payable | (1,989) | (1,687) |
Income taxes payable | 128 | (202) |
Net cash (used in) provided by operating activities | (32) | 1,159 |
Cash flows from investing activities | ||
Purchases of property and equipment | (64) | (57) |
Payments related to management contracts | (317) | |
Net cash used in investing activities | (381) | (57) |
Cash flows from financing activities | ||
Proceeds from issuance of notes, net of underwriting discount | 0 | 39,042 |
Payment of issuance costs on notes | 0 | (435) |
Repurchase of vested employee restricted stock for tax withholding | 0 | (37) |
Dividend payments | (1,026) | (1,008) |
Net cash (used in) provided by financing activities | (1,024) | 37,564 |
Net (decrease) increase in cash and cash equivalents | (1,437) | 38,666 |
Cash and cash equivalents at the beginning of the period | 58,487 | 15,836 |
Cash and cash equivalents at the end of the period | 57,050 | 54,502 |
Supplemental disclosures of cash flow information | ||
Cash paid for interest | 491 | 387 |
Dividend reinvestment issued in shares | 15 | 19 |
2021 Dividend Reinvestment And Stock Purchase Plan [Member] | ||
Cash flows from financing activities | ||
Proceeds from shares issued | $ 2 | $ 2 |
Basis of Financial Statement Pr
Basis of Financial Statement Presentation | 3 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Statement Presentation | (1) Basis of Financial Statement Presentation The accompanying condensed balance sheet as of September 30, 2022, which has been derived from audited financial statements, and the 10-Q. Form 10-K The preparation of financial statements requires management to make estimates and assumptions. Making estimates requires management to exercise significant judgment. Accordingly, the actual results could differ substantially from those estimates. The Company’s operating activities consist primarily of providing investment advisory services to 16 open-end exchange-traded The Company’s operating revenues consist of contractual investment advisory and shareholder service fees paid to it by the Hennessy Funds. The Company earns investment advisory fees from each Hennessy Fund by, among other things: • acting as portfolio manager for the fund or overseeing the sub-advisor • performing a daily reconciliation of portfolio positions and cash for the fund; • monitoring the liquidity of the fund; • monitoring the fund’s compliance with its investment objectives and restrictions and federal securities laws; • maintaining a compliance program (including a code of ethics), conducting ongoing reviews of the compliance programs of the fund’s service providers (including any sub-advisor), sub-advisor) • if applicable, overseeing the selection and continued employment of the fund’s sub-advisor, sub-advisor’s • overseeing service providers that provide accounting, administration, distribution, transfer agency, custodial, sales, marketing, public relations, audit, information technology, and legal services to the fund; • maintaining in-house • preparing or directing the preparation of all regulatory filings for the fund, including writing and annually updating the fund’s prospectus and related documents; • for each annual report of the fund, preparing or reviewing a written summary of the fund’s performance during the most recent 12-month • monitoring and overseeing the accessibility of the fund on third-party • paying the incentive compensation of the fund’s compliance officer and employing other staff such as legal, marketing, national accounts, distribution, sales, administrative, and trading oversight personnel, as well as management executives; • providing a quarterly compliance certification to the Board of Trustees of Hennessy Funds Trust (the “Funds’ Board of Trustees”); and • preparing or reviewing materials for the Funds’ Board of Trustees, presenting to or leading discussions with the Funds’ Board of Trustees, preparing or reviewing all meeting minutes, and arranging for training and education of the Funds’ Board of Trustees. The Company earns shareholder service fees from Investor Class shares of the Hennessy Mutual Funds by, among other things, maintaining a toll-free The Company waives a portion of its fees with respect to the Hennessy Midstream Fund, the Hennessy Technology Fund, and the Hennessy Stance ESG Large Cap ETF to comply with contractual expense ratio limitations. The fee waivers are calculated daily by the Hennessy Funds’ accountants at U.S. Bank Global Fund Services, reviewed by management, and then charged to expense monthly as offsets to the Company’s revenues. Each waived fee is then deducted from investment advisory fee income and reduces the aggregate amount of advisory fees the Company receives from such fund in the subsequent month. To date, the Company has only waived fees based on contractual obligations, but the Company has the ability to waive fees at its discretion. Any decision to waive fees would apply only on a going-forward The Company’s contractual agreements for investment advisory and shareholder services prove that a contract exists with fixed and determinable fees, and the services are rendered daily. The collectability is deemed probable because the fees are received from the Hennessy Funds in the month subsequent to the month in which the services are provided. |
Management Contracts Purchased
Management Contracts Purchased | 3 Months Ended |
Dec. 31, 2022 | |
Text Block [Abstract] | |
Management Contracts Purchased | (2) Management Contracts Purchased Throughout its history, the Company has completed 11 purchases of the assets related to the management of 30 different mutual funds and one ETF, some of which were reorganized into already existing Hennessy Funds. In accordance with Financial Accounting Standards Board (“FASB”) guidance, the Company periodically reviews the carrying value of its management contracts asset to determine if any impairment has occurred. The fair value of the management contracts asset was estimated as of September 30, 2022, by applying the income approach and is based on management estimates and assumptions, including third-party Under Accounting Standards Codification 350 — Intangibles – Goodwill and Other, intangible assets that have indefinite useful lives are not amortized but are tested at least annually for impairment. The Company reviews the useful life of the management contracts each reporting period to determine if they continue to have an indefinite useful life. The Company completed its most recent asset purchase on December 22, 2022, when it purchased certain assets related to the management of the Stance Equity ESG Large Cap Core ETF (the “Stance ETF”). This asset purchase added approximately sub-advisors |
Investment Advisory Agreements
Investment Advisory Agreements | 3 Months Ended |
Dec. 31, 2022 | |
Text Block [Abstract] | |
Investment Advisory Agreements | (3) Investment Advisory Agreements The Company has investment advisory agreements with Hennessy Funds Trust under which it provides investment advisory services to all classes of the 16 Hennessy Mutual Funds and the Hennessy Stance ESG Large Cap ETF. The investment advisory agreements must be renewed annually (except in limited circumstances) by (a) the Funds’ Board of Trustees or the vote of a majority of the outstanding shares of the applicable Hennessy Fund and (b) the vote of a majority of the trustees of Hennessy Funds Trust who are not interested persons of the Hennessy Funds. If an investment advisory agreement is not renewed, it terminates automatically. There are two additional circumstances in which an investment advisory agreement terminates. First, an investment advisory agreement automatically terminates if the Company assigns them to another advisor (assignment includes “indirect assignment,” which is the transfer of the Company’s common stock in sufficient quantities deemed to constitute a controlling block). Second, an investment advisory agreement may be terminated prior to its expiration upon 60 days’ written notice by either the applicable Hennessy Fund or the Company. As provided in each investment advisory agreement, the Company receives investment advisory fees monthly based on a percentage of the applicable fund’s average daily net asset value. The Company has entered into sub-advisory sub-advisory sub-advisor sub-advisors sub-advisory In exchange for the sub-advisory sub-advisory sub-advisors Sub-advisory sub-advised |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (4) Fair Value Measurements The Company applies Accounting Standards Codification 820 — Fair Value Measurement for all financial assets and liabilities, which establishes a framework for measuring fair value and expands disclosures about fair value measurements. The standard defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” It also establishes a fair value hierarchy consisting of the following three levels that prioritize the inputs to the valuation techniques used to measure fair value: • Level 1 – Unadjusted, quoted prices in active markets for identical assets or liabilities that an entity has the ability to access at the measurement date; • Level 2 – Other significant observable inputs (including, but not limited to, quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, and model-derived • Level 3 – Significant unobservable inputs (including the entity’s own assumptions about what market participants would use to price the asset or liability based on the best available information) when observable inputs are not available. Based on the definitions, the following tables represent the Company’s assets categorized in the Level 1 to Level 3 hierarchies: December 31, 2022 Level 1 Level 2 Level 3 Total (In thousands) Money market fund deposits $ 54,613 $ — $ — $ 54,613 Mutual fund investments 10 — — 10 Total $ 54,623 $ — $ — $ 54,623 Amounts included in: Cash and cash equivalents $ 54,613 $ — $ — $ 54,613 Investments in marketable securities 10 — — 10 Total $ 54,623 $ — $ — $ 54,623 September 30, 2022 Level 1 Level 2 Level 3 Total (In thousands) Money market fund deposits $ 54,225 $ — $ — $ 54,225 Mutual fund investments 9 — — 9 Total $ 54,234 $ — $ — $ 54,234 Amounts included in: Cash and cash equivalents $ 54,225 $ — $ — $ 54,225 Investments in marketable securities 9 — — 9 Total $ 54,234 $ — $ — $ 54,234 There were no transfers between levels during the three months ended December 31, 2022, or the year ended September 30, 2022. The fair values of receivables, payables, and accrued liabilities approximate their book values given the short-term nature of those instruments. The fair value of the 2026 Notes (see Note 7) was approximately $38.16 million as of December 31, 2022, based on the last trading price of the notes on that date (Level 1). |
Leases
Leases | 3 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | (5) Leases The Company determines if an arrangement is an operating lease at inception. Operating leases are included in operating lease right-of-use long-term long-term right-of-use long-term Right -of-use right-of-use right-of-use The Company’s most significant leases are real estate leases of office facilities. The Company leases office space under non-cancelable month-to-month right-of-use December 31, 2022 (In thousands, except years and percentages) Operating lease right-of-use $ 561 Current operating lease liability $ 369 Long-term operating lease liability $ 186 Weighted average remaining lease term 1.6 Weighted average discount rate 0.90 % For the three months ended December 31, 2022, rent expense for all offices, which is recorded under general and administrative expense in the statements of income, totaled $0.1 million. The undiscounted cash flows for future maturities of the Company’s operating lease liabilities and the reconciliation to the balance of operating lease liabilities reflected on the Company’s balance sheet are as follows: December 31, 2022 (In thousands) Remainder of fiscal year 2023 $ 281 Fiscal year 2024 286 Total undiscounted cash flows 567 Present value discount (12 ) Total operating lease liabilities $ 555 |
Accrued Liabilities and Account
Accrued Liabilities and Accounts Payable | 3 Months Ended |
Dec. 31, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities and Accounts Payable | (6) Accrued Liabilities and Accounts Payable Details relating to accrued liabilities and accounts payable reflected on the Company’s balance sheet are as follows: December 31, 2022 September 30, 2022 (In thousands) Accrued bonus liabilities $ 515 $ 2,207 Accrued sub-advisor 324 336 Other accrued expenses 492 777 Total accrued liabilities and accounts payable $ 1,331 $ 3,320 |
Debt Outstanding
Debt Outstanding | 3 Months Ended |
Dec. 31, 2022 | |
Debt Instruments [Abstract] | |
Debt Outstanding | (7) Debt Outstanding On October 20, 2021, the Company completed a public offering of 4.875% notes due 2026 in the aggregate principal amount of $40,250,000 (the “2026 Notes”), which included the full exercise of the underwriters’ overallotment option. The initial net proceeds received were approximately $38,607,000 after considering the impact of issuance costs and underwriter discounts. The 2026 Notes bear interest at 4.875% per annum, payable on the last day of each calendar quarter and at maturity, beginning December 31, 2021. The 2026 Notes mature on December 31, 2026. The 2026 |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (8) Income Taxes The Company’s effective income tax rates for the three months ended December 31, 2022 and 2021, were 25.8% and 16.1%, respectively. For the three months ended December 31, 2021, the effective income tax rate was lower than the federal statutory rate due to the recognition of a tax benefit related to a California tax refund of $0.2 million. The Company is subject to income tax in the U.S. federal jurisdiction and various state jurisdictions. As of December 31, 2022, the Company has identified 22 state tax jurisdictions in which it is subject to income tax. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (9) Commitments and Contingencies In addition to the operating leases discussed in Note 5, the Company has contractual expense ratio limitations in place with respect to the Hennessy Midstream Fund, the Hennessy Technology Fund, and the Hennessy Stance ESG Large Cap ETF. The contractual expense ratio limitations with respect to the Hennessy Midstream Fund and the Hennessy Technology Fund expire February 28, 2024. The contractual expense ratio limitation with respect to the Hennessy Stance ESG Large Cap ETF expires December 31, 2024. Total fees waived during each of the quarters ended December 31, 2022 and 2021 were $0.03 million. To date, the Company has only waived fees based on contractual obligations but has the ability to waive fees at its discretion. Any decision to waive fees would apply only on a going forward basis. The Company has no other commitments and no significant contingencies with original terms in excess of one year. |
Equity
Equity | 3 Months Ended |
Dec. 31, 2022 | |
Federal Home Loan Banks [Abstract] | |
Equity | (10) Equity Amended and Restated 2013 Omnibus Incentive Plan The Company has adopted, and the Company’s shareholders have approved, the Amended and Restated 2013 Omnibus Incentive Plan (the “Omnibus Plan”). stock-based straight-line A summary of RSU activity is as follows: Three Months Ended December 31, 2022 Shares Weighted Average Grant Non-vested 315,561 $ 8.15 Granted — — Vested (1) (31,753 ) (8.39 ) Forfeited — — Non-vested 283,808 $ 8.14 (1) Represents partially vested RSUs for which the Company already has recognized the associated compensation expense but has not yet issued to employees the related shares of common stock. Additional information related to RSUs is as follows: December 31, 2022 (In thousands, except years) Total expected compensation expense related to RSUs $ 18,143 Recognized compensation expense related to RSUs (15,833 ) Unrecognized compensation expense related to RSUs $ 2,310 Weighted average remaining years to expense for RSUs 2.8 Dividend Reinvestment and Stock Purchase Plan In January 2021, the Company adopted a Dividend Reinvestment and Stock Purchase Plan (the “DRSPP”), replacing the previous Dividend Reinvestment and Stock Purchase Plan that had been in place since 2018. The DRSPP provides shareholders and new investors with a convenient and economical means of purchasing shares of the Company’s common stock and reinvesting cash dividends paid on the Company’s common stock. Under the DRSPP and its predecessor plans, the Company issued 1,965 and 1,922 shares of common stock during the three months ended December 31, 2022 and 2021, respectively. The maximum number of shares that may be issued under the DRSPP is 1,470,000, of which 1,450,880 shares remained available for issuance as of December 31, 2022. Stock Buyback Program In August 2010, the Company’s Board of Directors adopted a stock buyback program pursuant to which the Company was authorized to repurchase up to 1,500,000 shares of its common stock in the open market, in privately negotiated transactions, or otherwise. The program has no expiration date. In August 2022, the Board of Directors increased the number of shares that may be repurchased under the program to 2,000,000 shares. As a result, a total of 1,096,368 shares remains available for repurchase under the stock buyback program. The Company did not repurchase any shares of its common stock pursuant to the stock buyback program during the three months ended December 31, 2022. |
Earnings per Share and Dividend
Earnings per Share and Dividends per Share | 3 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share and Dividends per Share | (11) Earnings per Share and Dividends per Share Basic earnings per share is determined by dividing net earnings by the weighted average number of shares of common stock outstanding, while diluted earnings per share is determined by dividing net earnings by the weighted average number of shares of common stock outstanding adjusted for the dilutive effect of common stock equivalents, which consist of RSUs. For the three months ended December 31, 2022 and 2021, the Company excluded 165,858 and 694 common stock equivalents, respectively, from the diluted earnings per share calculations because they were not dilutive. In each case, the excluded common stock equivalents consisted of non-vested The Company paid a quarterly cash dividend of $0.1375 per share on November 30, 2022, to shareholders of record as of November 15, 2022. |
Recently Issued and Adopted Acc
Recently Issued and Adopted Accounting Standards | 3 Months Ended |
Dec. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued and Adopted Accounting Standards | (12) Recently Issued and Adopted Accounting Standards The Company has reviewed accounting pronouncements issued between the filing date of its most recent Form 10-K, 10-Q |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | (13) Subsequent Events The Company has evaluated subsequent events through the date these financial statements were issued and has concluded that no material events occurred during this period that require recognition or disclosure. |
Basis of Financial Statement _2
Basis of Financial Statement Presentation (Policies) | 3 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue Recognition | The preparation of financial statements requires management to make estimates and assumptions. Making estimates requires management to exercise significant judgment. Accordingly, the actual results could differ substantially from those estimates. The Company’s operating activities consist primarily of providing investment advisory services to 16 open-end exchange-traded The Company’s operating revenues consist of contractual investment advisory and shareholder service fees paid to it by the Hennessy Funds. The Company earns investment advisory fees from each Hennessy Fund by, among other things: • acting as portfolio manager for the fund or overseeing the sub-advisor • performing a daily reconciliation of portfolio positions and cash for the fund; • monitoring the liquidity of the fund; • monitoring the fund’s compliance with its investment objectives and restrictions and federal securities laws; • maintaining a compliance program (including a code of ethics), conducting ongoing reviews of the compliance programs of the fund’s service providers (including any sub-advisor), sub-advisor) • if applicable, overseeing the selection and continued employment of the fund’s sub-advisor, sub-advisor’s • overseeing service providers that provide accounting, administration, distribution, transfer agency, custodial, sales, marketing, public relations, audit, information technology, and legal services to the fund; • maintaining in-house • preparing or directing the preparation of all regulatory filings for the fund, including writing and annually updating the fund’s prospectus and related documents; • for each annual report of the fund, preparing or reviewing a written summary of the fund’s performance during the most recent 12-month • monitoring and overseeing the accessibility of the fund on third-party • paying the incentive compensation of the fund’s compliance officer and employing other staff such as legal, marketing, national accounts, distribution, sales, administrative, and trading oversight personnel, as well as management executives; • providing a quarterly compliance certification to the Board of Trustees of Hennessy Funds Trust (the “Funds’ Board of Trustees”); and • preparing or reviewing materials for the Funds’ Board of Trustees, presenting to or leading discussions with the Funds’ Board of Trustees, preparing or reviewing all meeting minutes, and arranging for training and education of the Funds’ Board of Trustees. The Company earns shareholder service fees from Investor Class shares of the Hennessy Mutual Funds by, among other things, maintaining a toll-free The Company waives a portion of its fees with respect to the Hennessy Midstream Fund, the Hennessy Technology Fund, and the Hennessy Stance ESG Large Cap ETF to comply with contractual expense ratio limitations. The fee waivers are calculated daily by the Hennessy Funds’ accountants at U.S. Bank Global Fund Services, reviewed by management, and then charged to expense monthly as offsets to the Company’s revenues. Each waived fee is then deducted from investment advisory fee income and reduces the aggregate amount of advisory fees the Company receives from such fund in the subsequent month. To date, the Company has only waived fees based on contractual obligations, but the Company has the ability to waive fees at its discretion. Any decision to waive fees would apply only on a going-forward The Company’s contractual agreements for investment advisory and shareholder services prove that a contract exists with fixed and determinable fees, and the services are rendered daily. The collectability is deemed probable because the fees are received from the Hennessy Funds in the month subsequent to the month in which the services are provided. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Assets Categorized on Basis of Various Levels | Based on the definitions, the following tables represent the Company’s assets categorized in the Level 1 to Level 3 hierarchies: December 31, 2022 Level 1 Level 2 Level 3 Total (In thousands) Money market fund deposits $ 54,613 $ — $ — $ 54,613 Mutual fund investments 10 — — 10 Total $ 54,623 $ — $ — $ 54,623 Amounts included in: Cash and cash equivalents $ 54,613 $ — $ — $ 54,613 Investments in marketable securities 10 — — 10 Total $ 54,623 $ — $ — $ 54,623 September 30, 2022 Level 1 Level 2 Level 3 Total (In thousands) Money market fund deposits $ 54,225 $ — $ — $ 54,225 Mutual fund investments 9 — — 9 Total $ 54,234 $ — $ — $ 54,234 Amounts included in: Cash and cash equivalents $ 54,225 $ — $ — $ 54,225 Investments in marketable securities 9 — — 9 Total $ 54,234 $ — $ — $ 54,234 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Detailed Information About In Operating Lease Right Of Use Assets Lease Liabilities and Others | The classification of the Company’s operating lease right-of-use December 31, 2022 (In thousands, except years and percentages) Operating lease right-of-use $ 561 Current operating lease liability $ 369 Long-term operating lease liability $ 186 Weighted average remaining lease term 1.6 Weighted average discount rate 0.90 % |
Schedule Of Operating Lease Maturities | The undiscounted cash flows for future maturities of the Company’s operating lease liabilities and the reconciliation to the balance of operating lease liabilities reflected on the Company’s balance sheet are as follows: December 31, 2022 (In thousands) Remainder of fiscal year 2023 $ 281 Fiscal year 2024 286 Total undiscounted cash flows 567 Present value discount (12 ) Total operating lease liabilities $ 555 |
Accrued Liabilities and Accou_2
Accrued Liabilities and Accounts Payable (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of accrued liabilities | Details relating to accrued liabilities and accounts payable reflected on the Company’s balance sheet are as follows: December 31, 2022 September 30, 2022 (In thousands) Accrued bonus liabilities $ 515 $ 2,207 Accrued sub-advisor 324 336 Other accrued expenses 492 777 Total accrued liabilities and accounts payable $ 1,331 $ 3,320 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Federal Home Loan Banks [Abstract] | |
Schedule of Non-Vested Restricted Stock Units Activity | A summary of RSU activity is as follows: Three Months Ended December 31, 2022 Shares Weighted Average Grant Non-vested 315,561 $ 8.15 Granted — — Vested (1) (31,753 ) (8.39 ) Forfeited — — Non-vested 283,808 $ 8.14 (1) Represents partially vested RSUs for which the Company already has recognized the associated compensation expense but has not yet issued to employees the related shares of common stock. |
Schedule of Non-Vested Restricted Stock Units Compensation | Additional information related to RSUs is as follows: December 31, 2022 (In thousands, except years) Total expected compensation expense related to RSUs $ 18,143 Recognized compensation expense related to RSUs (15,833 ) Unrecognized compensation expense related to RSUs $ 2,310 Weighted average remaining years to expense for RSUs 2.8 |
Basis of Financial Statement _3
Basis of Financial Statement Presentation - Additional Information (Detail) | 3 Months Ended |
Dec. 31, 2022 Funds | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Hennessy funds to which company provides investment advisory services | 16 |
Management Contracts Purchased
Management Contracts Purchased - Additional Information (Detail) | Dec. 31, 2022 USD ($) Funds | Sep. 30, 2022 USD ($) |
Contracts In Progress Costs And Earnings [Line Items] | ||
Number of mutual funds | Funds | 30 | |
Management contracts impairment amount | $ 0 | $ 0 |
Asset purchase | $ 43,000,000 |
Investment Advisory Agreements
Investment Advisory Agreements - Additional Information (Detail) | 3 Months Ended |
Dec. 31, 2022 Funds | |
Investment Schedule [Abstract] | |
Number of Hennessy funds to which company provides investment advisory services | 16 |
Notice period for termination of agreement | 60 days |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Categorized on Basis of Various Levels (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market fund deposits | $ 54,613 | $ 54,225 |
Mutual fund investments | 10 | 9 |
Cash and cash equivalents | 54,613 | 54,225 |
Investments in marketable securities | 10 | 9 |
Total | 54,623 | 54,234 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market fund deposits | 54,613 | 54,225 |
Mutual fund investments | 10 | 9 |
Cash and cash equivalents | 54,613 | 54,225 |
Investments in marketable securities | 10 | 9 |
Total | $ 54,623 | $ 54,234 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Sep. 30, 2022 | |
Transfer from fair value level 1 to level 2 | $ 0 | $ 0 |
Transfer from fair value level 2 to level 1 | 0 | 0 |
Transfer into (out of) level 3 | 0 | $ 0 |
2026 Notes [Member] | Notes Payable [Member] | Level 1 [Member] | ||
Notes Payable, Fair Value Disclosure | $ 38,160,000 |
Leases - Schedule Of Operating
Leases - Schedule Of Operating Lease Maturities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Operating lease right-of-use assets | $ 561 | $ 651 |
Current operating lease liability | 369 | 367 |
Long-term operating lease liability | $ 186 | $ 279 |
Weighted average remaining lease term | 1 year 7 months 6 days | |
Weighted average discount rate | 0.90% |
Leases - Detailed Information A
Leases - Detailed Information About In Operating Lease Right Of Use Assets Lease Liabilities and Others (Detail) $ in Thousands | Dec. 31, 2022 USD ($) |
Remainder of fiscal year 2023 | $ 281 |
Fiscal year 2024 | 286 |
Total undiscounted cash flows | 567 |
Present value discount | (12) |
Total operating lease liabilities | $ 555 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Sep. 30, 2022 | |
Operating lease right-of-use assets | $ 561 | $ 651 |
Additional operating lease term | 3 years | |
Novato California [Member] | ||
Operating lease right-of-use assets | $ 1,100 | |
Operating lease expiry date | Jul. 31, 2024 | |
General and Administrative Expense [Member] | ||
Right of use assets payments | $ 100 |
Accrued Liabilities and Accou_3
Accrued Liabilities and Accounts Payable - Summary of accrued expenses reflected on the company's balance sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Accrued Liabilities, Current [Abstract] | ||
Accrued bonus liabilities | $ 515 | $ 2,207 |
Accrued sub-advisor fees | 324 | 336 |
Other accrued expenses | 492 | 777 |
Total accrued expenses | $ 1,331 | $ 3,320 |
Debt Outstanding - Additional I
Debt Outstanding - Additional Information (Detail) - 2026 Notes [Member] - Notes Payable [Member] | Oct. 20, 2021 USD ($) |
Debt Instrument [Line Items] | |
Debt Instrument, Interest rate | 4.875% |
Debt Instrument, Face Amount | $ 40,250,000 |
Debt Instrument, Payment terms | The 2026 Notes bear interest at 4.875% per annum, payable on the last day of each calendar quarter and at maturity, beginning December 31, 2021 |
Proceeds from Debt, Net of issuance costs | $ 38,607,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rates | 25.80% | 16.10% |
Recognition of tax benefits | $ 0.2 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Total Fees Waived Based on Contractual Obligations | $ 30 | $ 30 |
Equity - Additional Information
Equity - Additional Information (Detail) - shares | 1 Months Ended | 3 Months Ended | |||
Aug. 31, 2010 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | Aug. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum common stock issuable under plan | 22,500,000 | 22,500,000 | |||
Stock buyback program [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Repurchase of common stock shares | 0 | ||||
Number of shares remains available for repurchase under the program | 1,096,368 | ||||
Number of Shares Authorized to be repurchased | 1,500,000 | 2,000,000 | |||
Dividend Reinvestment and Stock Purchase Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock issued during period shares | 1,965 | 1,922 | |||
Maximum common stock issuable under plan | 1,470,000 | ||||
Shares available for issuance under plan | 1,450,880 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum Vesting Period | 4 years | ||||
Rate of restricted stock units vest under plan | 25% |
Equity - Schedule of Non-Vested
Equity - Schedule of Non-Vested Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) [Member] | 3 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested Beginning Balance, Number of Restricted Share Units | shares | 315,561 |
Granted, Number of Restricted Share Units | shares | 0 |
Vested, Number of Restricted Share Units | shares | (31,753) |
Forfeited, Number of Restricted Share Units | shares | 0 |
Non-vested Ending Balance, Number of Restricted Share Units | shares | 283,808 |
Non-vested Beginning Balance, Weighted Avg. Fair Value Per Share at Each Date | $ / shares | $ 8.15 |
Granted, Weighted Avg. Fair Value Per Share at Each Date | $ / shares | 0 |
Vested, Weighted Avg. Fair Value per Share at Each Date | $ / shares | (8.39) |
Forfeited, Weighted Avg. Fair Value per Share at Each Date | $ / shares | 0 |
Non-vested Ending Balance, Weighted Avg. Fair Value Per Share at Each Date | $ / shares | $ 8.14 |
Equity - Schedule of Non-Vest_2
Equity - Schedule of Non-Vested Restricted Stock Units Compensation (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total expected compensation expense related to RSUs | $ 262 | $ 388 |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total expected compensation expense related to RSUs | 18,143 | |
Recognized compensation expense related to RSUs | (15,833) | |
Unrecognized compensation expense for RSUS | $ 2,310 | |
Weighted average remaining years to expense for RSUs | 2 years 9 months 18 days |
Earnings per Share and Divide_2
Earnings per Share and Dividends per Share - Additional Information (Detail) - $ / shares | 3 Months Ended | ||
Nov. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted Average Amounts Used In Calculating Earnings Per Share [Line Items] | |||
Dividends paid | $ 0.1375 | ||
Restricted Stock Units (RSUs) [Member] | |||
Weighted Average Amounts Used In Calculating Earnings Per Share [Line Items] | |||
Stock options excluded from diluted earnings per share | 165,858 | 694 |