Hennessy Advisors (HNNA) 10-Q 9 Feb 23 2022 Q1 Quarterly report Financial data

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