Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Jun. 30, 2024 | Aug. 05, 2024 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001145255 | |
Entity Registrant Name | HENNESSY ADVISORS INC | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2024 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-36423 | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 68-0176227 | |
Entity Address, Address Line One | 7250 Redwood Boulevard, Suite 200 | |
Entity Address, City or Town | Novato | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94945 | |
City Area Code | 415 | |
Local Phone Number | 899-1555 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,681,095 | |
Public Income Notes [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 4.875% Notes due 2026 | |
Trading Symbol | HNNAZ | |
Security Exchange Name | NASDAQ | |
Common Stock [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common stock, no par value | |
Trading Symbol | HNNA | |
Security Exchange Name | NASDAQ |
Balance Sheets (Current Period
Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Current assets | ||
Cash and cash equivalents | $ 62,017 | $ 60,476 |
Investments in marketable securities, at fair value | 11 | 10 |
Investment fee income receivable | 2,630 | 2,046 |
Interest income receivable | 255 | 253 |
Prepaid expenses | 390 | 669 |
Other accounts receivable | 294 | 247 |
Total current assets | 65,597 | 63,701 |
Property and equipment, net of accumulated depreciation of $1,480 and $2,287, respectively | 333 | 305 |
Operating lease right-of-use asset | 1,095 | 295 |
Management contracts | 82,252 | 81,262 |
Other assets | 183 | 156 |
Total assets | 149,460 | 145,719 |
Current liabilities | ||
Accrued liabilities and accounts payable | 2,995 | 3,165 |
Operating lease liability | 293 | 279 |
Income taxes payable | 485 | 748 |
Total current liabilities | 3,773 | 4,192 |
Notes payable, net of issuance costs | 39,397 | 39,164 |
Long-term operating lease liability | 781 | 0 |
Net deferred income tax liability | 15,346 | 14,611 |
Total liabilities | 59,297 | 57,967 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity | ||
Common stock, no par value, 22,500,000 shares authorized; 7,681,007 shares issued and outstanding as of June 30, 2024, and 7,671,099 as of September 30, 2023 | 22,607 | 21,800 |
Retained earnings | 67,556 | 65,952 |
Total stockholders' equity | 90,163 | 87,752 |
Total liabilities and stockholders' equity | $ 149,460 | $ 145,719 |
Balance Sheets (Current Perio_2
Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ / shares in Thousands, $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Accumulated depreciation | $ 1,480 | $ 2,287 |
Common Stock, No Par Value (in dollars per share) | $ 0 | $ 0 |
Common Stock, Authorized (in shares) | 22,500,000 | 22,500,000 |
Common Stock, Issued (in shares) | 7,681,007 | 7,671,099 |
Common Stock, Outstanding (in shares) | 7,681,007 | 7,671,099 |
Statements of Income (Unaudited
Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue | ||||
Revenue | $ 7,784 | $ 5,701 | $ 20,868 | $ 17,762 |
Operating expenses | ||||
Compensation and benefits | 2,274 | 1,942 | 6,393 | 5,730 |
General and administrative | 1,557 | 1,304 | 4,745 | 4,149 |
Fund distribution and other | 228 | 116 | 578 | 343 |
Sub-advisory fees | 1,081 | 898 | 3,038 | 2,797 |
Depreciation | 59 | 59 | 185 | 164 |
Total operating expenses | 5,199 | 4,319 | 14,939 | 13,183 |
Net operating income | 2,585 | 1,382 | 5,929 | 4,579 |
Interest income | (772) | (711) | (2,329) | (1,758) |
Interest expense | 569 | 565 | 1,704 | 1,690 |
Income before income tax expense | 2,788 | 1,528 | 6,554 | 4,647 |
Income tax expense | 759 | 412 | 1,785 | 1,217 |
Net income | $ 2,029 | $ 1,116 | $ 4,769 | $ 3,430 |
Earnings per share | ||||
Basic (in dollars per share) | $ 0.26 | $ 0.15 | $ 0.62 | $ 0.45 |
Diluted (in dollars per share) | $ 0.26 | $ 0.15 | $ 0.62 | $ 0.45 |
Weighted average shares outstanding | ||||
Basic (in shares) | 7,679,212 | 7,576,790 | 7,675,821 | 7,574,528 |
Diluted (in shares) | 7,732,068 | 7,605,689 | 7,698,987 | 7,597,167 |
Cash dividends declared per share (in dollars per share) | $ 0.14 | $ 0.14 | $ 0.41 | $ 0.41 |
Investment Advice [Member] | ||||
Revenue | ||||
Revenue | $ 7,242 | $ 5,236 | $ 19,343 | $ 16,325 |
Shareholder Service [Member] | ||||
Revenue | ||||
Revenue | $ 542 | $ 465 | $ 1,525 | $ 1,437 |
Statements of Changes in Stockh
Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Two Thousand Eighteen Dividend Reinvestment and Stock Purchase Plan [Member] Common Stock [Member] | Two Thousand Eighteen Dividend Reinvestment and Stock Purchase Plan [Member] Common Stock Including Additional Paid in Capital [Member] | Two Thousand Eighteen Dividend Reinvestment and Stock Purchase Plan [Member] Retained Earnings [Member] | Two Thousand Eighteen Dividend Reinvestment and Stock Purchase Plan [Member] | Two Thousand Twenty Four Dividend Reinvestment and Stock Purchase Plan [Member] Common Stock [Member] | Two Thousand Twenty Four Dividend Reinvestment and Stock Purchase Plan [Member] Common Stock Including Additional Paid in Capital [Member] | Two Thousand Twenty Four Dividend Reinvestment and Stock Purchase Plan [Member] Retained Earnings [Member] | Two Thousand Twenty Four Dividend Reinvestment and Stock Purchase Plan [Member] | Common Stock [Member] | Common Stock Including Additional Paid in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) | 7,571,741 | |||||||||||
Balance (in shares) at Sep. 30, 2022 | 7,571,741 | |||||||||||
Balance at Sep. 30, 2022 | $ 20,951 | $ 65,347 | $ 86,298 | |||||||||
Net income | 0 | 1,119 | 1,119 | |||||||||
Dividends paid | 0 | (1,041) | (1,041) | |||||||||
Shares issued for auto-investments pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan (in shares) | 215 | |||||||||||
Shares issued for auto-investments pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan | $ 2 | $ 0 | $ 2 | |||||||||
Shares issued for dividend reinvestment pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan (in shares) | 1,750 | |||||||||||
Shares issued for dividend reinvestment pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan | 15 | 0 | 15 | |||||||||
Stock-based compensation | 262 | 0 | 262 | |||||||||
Balance (in shares) at Dec. 31, 2022 | 7,573,706 | |||||||||||
Balance at Dec. 31, 2022 | 21,230 | 65,425 | 86,655 | |||||||||
Balance (in shares) at Sep. 30, 2022 | 7,571,741 | |||||||||||
Balance at Sep. 30, 2022 | 20,951 | 65,347 | 86,298 | |||||||||
Net income | 3,430 | |||||||||||
Balance (in shares) at Jun. 30, 2023 | 7,578,432 | |||||||||||
Balance at Jun. 30, 2023 | 21,772 | 65,653 | 87,425 | |||||||||
Balance (in shares) | 7,573,706 | |||||||||||
Balance (in shares) at Dec. 31, 2022 | 7,573,706 | |||||||||||
Balance at Dec. 31, 2022 | 21,230 | 65,425 | 86,655 | |||||||||
Net income | 0 | 1,195 | 1,195 | |||||||||
Dividends paid | 0 | (1,041) | (1,041) | |||||||||
Shares issued for auto-investments pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan (in shares) | 199 | |||||||||||
Shares issued for auto-investments pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan | 2 | 0 | 2 | |||||||||
Shares issued for dividend reinvestment pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan (in shares) | 1,924 | |||||||||||
Shares issued for dividend reinvestment pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan | 16 | 0 | 16 | |||||||||
Stock-based compensation | 262 | 0 | 262 | |||||||||
Balance (in shares) at Mar. 31, 2023 | 7,575,829 | |||||||||||
Balance at Mar. 31, 2023 | 21,510 | 65,579 | 87,089 | |||||||||
Balance (in shares) | 7,575,829 | |||||||||||
Net income | 0 | 1,116 | 1,116 | |||||||||
Dividends paid | 0 | (1,042) | (1,042) | |||||||||
Shares issued for auto-investments pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan (in shares) | 402 | |||||||||||
Shares issued for auto-investments pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan | 3 | 0 | 3 | |||||||||
Shares issued for dividend reinvestment pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan (in shares) | 2,201 | |||||||||||
Shares issued for dividend reinvestment pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan | 16 | 0 | 16 | |||||||||
Stock-based compensation | 260 | 0 | 260 | |||||||||
Balance (in shares) at Jun. 30, 2023 | 7,578,432 | |||||||||||
Employee restricted stock forfeiture | (17) | 0 | (17) | |||||||||
Employee restricted stock forfeiture | 17 | 0 | 17 | |||||||||
Balance at Jun. 30, 2023 | 21,772 | 65,653 | 87,425 | |||||||||
Balance (in shares) | 7,578,432 | |||||||||||
Balance (in shares) | 7,671,099 | |||||||||||
Balance (in shares) at Sep. 30, 2023 | 7,671,099 | |||||||||||
Balance at Sep. 30, 2023 | 21,800 | 65,952 | 87,752 | |||||||||
Net income | 0 | 1,200 | 1,200 | |||||||||
Dividends paid | 0 | (1,055) | (1,055) | |||||||||
Shares issued for auto-investments pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan (in shares) | 145 | |||||||||||
Shares issued for auto-investments pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan | 1 | 0 | 1 | |||||||||
Shares issued for dividend reinvestment pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan (in shares) | 2,625 | |||||||||||
Shares issued for dividend reinvestment pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan | 17 | 0 | 17 | |||||||||
Stock-based compensation | 246 | 0 | 246 | |||||||||
Balance (in shares) at Dec. 31, 2023 | 7,673,869 | |||||||||||
Balance at Dec. 31, 2023 | 22,064 | 66,097 | 88,161 | |||||||||
Balance (in shares) at Sep. 30, 2023 | 7,671,099 | |||||||||||
Balance at Sep. 30, 2023 | 21,800 | 65,952 | 87,752 | |||||||||
Net income | 4,769 | |||||||||||
Balance (in shares) at Jun. 30, 2024 | 7,681,007 | |||||||||||
Balance at Jun. 30, 2024 | 22,607 | 67,556 | 90,163 | |||||||||
Balance (in shares) | 7,673,869 | |||||||||||
Balance (in shares) at Dec. 31, 2023 | 7,673,869 | |||||||||||
Balance at Dec. 31, 2023 | 22,064 | 66,097 | 88,161 | |||||||||
Net income | 0 | 1,540 | 1,540 | |||||||||
Dividends paid | 0 | (1,055) | (1,055) | |||||||||
Shares issued for auto-investments pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan (in shares) | 1,100 | 669 | ||||||||||
Shares issued for auto-investments pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan | $ 8 | $ 0 | $ 8 | $ 5 | $ 0 | $ 5 | ||||||
Shares issued for dividend reinvestment pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan (in shares) | 2,577 | |||||||||||
Shares issued for dividend reinvestment pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan | $ 17 | $ 0 | $ 17 | |||||||||
Stock-based compensation | 246 | 0 | 246 | |||||||||
Balance (in shares) at Mar. 31, 2024 | 7,678,215 | |||||||||||
Balance at Mar. 31, 2024 | 22,340 | 66,582 | 88,922 | |||||||||
Balance (in shares) | 7,678,215 | |||||||||||
Net income | 0 | 2,029 | 2,029 | |||||||||
Dividends paid | 0 | (1,055) | (1,055) | |||||||||
Shares issued for auto-investments pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan (in shares) | 392 | |||||||||||
Shares issued for auto-investments pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan | 2 | 0 | 2 | |||||||||
Shares issued for dividend reinvestment pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan (in shares) | 2,400 | |||||||||||
Shares issued for dividend reinvestment pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan | 18 | 0 | 18 | |||||||||
Stock-based compensation | 247 | 0 | 247 | |||||||||
Balance (in shares) at Jun. 30, 2024 | 7,681,007 | |||||||||||
Balance at Jun. 30, 2024 | $ 22,607 | $ 67,556 | $ 90,163 | |||||||||
Balance (in shares) | 7,681,007 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities | ||
Net income | $ 4,769 | $ 3,430 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation | 185 | 164 |
Unrealized gain on marketable securities | (1) | (1) |
Change in right-of-use asset and operating lease liability | (5) | (6) |
Amortization of note issuance costs | 233 | 219 |
Deferred income taxes | 735 | 905 |
Employee restricted stock forfeiture | 0 | (17) |
Stock-based compensation | 739 | 784 |
Change in operating assets and liabilities | ||
Investment fee income receivable | (584) | 131 |
Interest income receivable | (2) | 0 |
Prepaid expenses | 279 | 103 |
Other accounts receivable | (47) | 20 |
Other assets | (27) | (1) |
Accrued liabilities and accounts payable | (170) | (751) |
Income taxes payable | (263) | (334) |
Net cash provided by operating activities | 5,841 | 4,646 |
Cash flows from investing activities | ||
Purchases of property and equipment | (213) | (163) |
Payments related to management contracts | (990) | (501) |
Net cash used in investing activities | (1,203) | (664) |
Cash flows from financing activities | ||
Dividend payments | (3,113) | (3,077) |
Net cash used in financing activities | (3,097) | (3,070) |
Net increase in cash and cash equivalents | 1,541 | 912 |
Cash and cash equivalents at the beginning of the period | 60,476 | 58,487 |
Cash and cash equivalents at the end of the period | 62,017 | 59,399 |
Supplemental disclosures of cash flow information | ||
Cash paid for income taxes | 1,314 | 646 |
Cash paid for interest | 1,472 | 1,472 |
Dividend reinvestment issued in shares | 52 | 47 |
Two Thousand Twenty One Dividend Reinvestment and Stock Purchase Plan [Member] | ||
Cash flows from financing activities | ||
Proceeds from shares issued pursuant to the 2021 Dividend Reinvestment and Stock Repurchase Plan | 9 | 7 |
Two Thousand Twenty Four Dividend Reinvestment and Stock Purchase Plan [Member] | ||
Cash flows from financing activities | ||
Proceeds from shares issued pursuant to the 2021 Dividend Reinvestment and Stock Repurchase Plan | $ 7 | $ 0 |
Note 1 - Basis of Financial Sta
Note 1 - Basis of Financial Statement Presentation | 9 Months Ended |
Jun. 30, 2024 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | ( 1 Basis of Financial Statement Presentation The accompanying unaudited condensed balance sheet as of September 30, 2023 three nine June 30, 2024 may 10 10 June 30, 2024 three nine June 30, 2024 2023 nine June 30, 2024 2023 2023, 10‑K September 30, 2023. 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 mutual funds and one 30 The employee retention credit (“ERC”), as originally enacted on March 27, 2020, 50% December 31, 2021, 19 941 X May 2023, not 20" 20, 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 acting as portfolio manager for the fund, which includes managing the composition of the fund’s portfolio (including the purchase, retention, and disposition of portfolio securities in accordance with the fund’s investment objectives, policies, and restrictions), seeking best execution for the fund’s portfolio, managing the use of "soft dollars" for the fund, and managing proxy voting for the fund; ● 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), including their codes of ethics, as appropriate, conducting onsite visits to the fund’s service providers (including any sub-advisor) as feasible, monitoring incidents of abusive trading practices, reviewing fund expense accruals, payments, and fixed expense ratios, evaluating insurance providers for fidelity bond, directors and officers and errors and omissions insurance, and cybersecurity insurance coverage, managing regulatory examination compliance and responses, conducting employee compliance training, reviewing reports provided by service providers, and maintaining books and records; ● if applicable, overseeing the selection and continued employment of the fund’s sub‑advisor, reviewing the fund’s investment performance, and monitoring the sub‑advisor’s adherence to the fund’s investment objectives, policies, and restrictions; ● 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 marketing and distribution departments on behalf of the fund; ● 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 financial institution platforms; ● 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 number that the current investors in the Hennessy Funds may Investment advisory and shareholder service fee revenues are earned and calculated daily by the Hennessy Funds’ accountants at U.S. Bank Global Fund Services and are subsequently reviewed by management. The Company recognizes revenues when its obligations related to the investment advisory and shareholder services are satisfied, and it is probable that a significant reversal of the revenue amount would not 12 606 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. |
Note 2 - Management Contracts P
Note 2 - Management Contracts Purchased | 9 Months Ended |
Jun. 30, 2024 | |
Notes to Financial Statements | |
Management Contracts Purchased [Text Block] | ( 2 Management Contracts Purchased Throughout its history, the Company has completed 12 purchases of the assets related to the management of 33 investment funds, 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, 2023, June 30, 2024 not Under Accounting Standards Codification 350 not no The Company completed its most recent asset purchases on November 10, 2023, February 23, 2024, April 26, 2023, In the nine June 30, 2024 |
Note 3 - Investment Advisory Ag
Note 3 - Investment Advisory Agreements | 9 Months Ended |
Jun. 30, 2024 | |
Notes to Financial Statements | |
Investment Advisory Agreements [Text Block] | ( 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 ETF. The investment advisory agreements must be renewed annually (except in limited circumstances) by (i) the Funds’ Board of Trustees or the vote of a majority of the outstanding shares of the applicable Hennessy Fund and (ii) the vote of a majority of the trustees of Hennessy Funds Trust who are not not two may 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 agreements for the Hennessy Focus Fund, the Hennessy Equity and Income Fund, the Hennessy Japan Fund, the Hennessy Japan Small Cap Fund, and the Hennessy Stance ESG ETF. Under each of these sub-advisory agreements, the sub‑advisor is responsible for the investment and reinvestments of the assets of the applicable Hennessy Fund in accordance with the terms of such agreement and the applicable Hennessy Fund’s Prospectus and Statement of Additional Information. The sub‑advisors are subject to the direction, supervision, and control of the Company and the Funds’ Board of Trustees. The sub‑advisory agreements must be renewed annually (except in limited circumstances) in the same manner as, and are subject to the same termination provisions as, the investment advisory agreements. In exchange for sub-advisory services, the Company ( not |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements | 9 Months Ended |
Jun. 30, 2024 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | ( 4 Fair Value Measurements The Company applies Accounting Standards Codification 820 three ● Level 1 ● Level 2 1 not not ● Level 3 not Based on the definitions, the following tables represent the Company’s assets categorized in the Level 1 3 June 30, 2024 Level 1 Level 2 Level 3 Total (In thousands) Money market fund deposits $ 60,159 $ - $ - $ 60,159 Mutual fund investments 11 - - 11 Total $ 60,170 $ - $ - $ 60,170 Amounts included in: Cash and cash equivalents $ 60,159 $ - $ - $ 60,159 Investments in marketable securities 11 - - 11 Total $ 60,170 $ - $ - $ 60,170 September 30, 2023 Level 1 Level 2 Level 3 Total (In thousands) Money market fund deposits $ 59,382 $ - $ - $ 59,382 Mutual fund investments 10 - - 10 Total $ 59,392 $ - $ - $ 59,392 Amounts included in: Cash and cash equivalents $ 59,382 $ - $ - $ 59,382 Investments in marketable securities 10 - - 10 Total $ 59,392 $ - $ - $ 59,392 There were no three June 30, 2024 September 30, 2023. 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 7 June 30, 2024 1 not 2026 825 |
Note 5 - Leases
Note 5 - Leases | 9 Months Ended |
Jun. 30, 2024 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | ( 5 Leases The Company determines if an arrangement is an operating lease at inception. Operating leases are included in operating lease right‑of‑use assets and current and long‑term operating lease liabilities on the Company’s balance sheet. There were no long‑term operating leases as of September 30, 2023. March 31, 2024, three July 31, 2027 March 31, 2024. June 30, 2024 Upon renewal of the lease for its office in Novato, California, the Company recorded a right‑of‑use asset of $1.1 million on its balance sheet. Right‑of‑use assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease right‑of‑use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the present value of lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date. The Company’s lease terms may not not 12 not The Company’s most significant leases are real estate leases of office facilities. The Company leases office space under non-cancelable operating leases. Its principal executive office is located in Novato, California, and it has additional offices in Austin, Texas, Dallas, Texas, Boston, Massachusetts, and Chapel Hill, North Carolina. Only the office lease in Novato, California has been capitalized because the other operating leases have terms of 12 June 30, 2024 (In thousands, except years and percentages) Operating lease right-of-use assets $ 1,095 Current operating lease liability $ 293 Long-term operating lease liability $ 781 Weighted average remaining lease term 3.1 Weighted average discount rate 6.15 % Operating lease liabilities arising from obtaining right-of-use assets $ 1,055 For the nine June 30, 2024 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: June 30, 2024 (In thousands) Remainder of fiscal year 2024 $ 64 Fiscal year 2025 384 Fiscal year 2026 395 Fiscal year 2027 337 Total undiscounted cash flows 1,180 Present value discount (106 ) Total operating lease liabilities 1,074 |
Note 6 - Accrued Liabilities an
Note 6 - Accrued Liabilities and Accounts Payable | 9 Months Ended |
Jun. 30, 2024 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | ( 6 Accrued Liabilities and Accounts Payable Details relating to accrued liabilities and accounts payable reflected on the Company’s balance sheet are as follows: June 30, 2024 September 30, 2023 (In thousands) Accrued bonus liabilities $ 1,992 $ 2,260 Accrued sub-advisor fees 354 310 Other accrued expenses 649 595 Total accrued liabilities and accounts payable $ 2,995 $ 3,165 |
Note 7 - Debt Outstanding
Note 7 - Debt Outstanding | 9 Months Ended |
Jun. 30, 2024 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | ( 7 Debt Outstanding On October 20, 2021, 2026 “2026 2026 4.875% December 31, 2021. 2026 December 31, 2026 The 2026 2026 |
Note 8 - Income Taxes
Note 8 - Income Taxes | 9 Months Ended |
Jun. 30, 2024 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | ( 8 Income Taxes The Company’s effective income tax rates for the nine June 30, 2024 2023 The Company is subject to income tax in the U.S. federal jurisdiction and various state jurisdictions. |
Note 9 - Commitments and Contin
Note 9 - Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2024 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | ( 9 Commitments and Contingencies In addition to the operating leases discussed in Note 5, February 28, 2025, nine June 30, 2024 June 30, 2023 The Company has no other commitments and no one |
Note 10 - Equity
Note 10 - Equity | 9 Months Ended |
Jun. 30, 2024 | |
Notes to Financial Statements | |
Equity [Text Block] | ( 10 Equity 2024 Effective as of February 8, 2024, 2024 2013 may four four A summary of RSU activity is as follows: Nine Months Ended June 30, 2024 Shares Weighted Average Grant Date Fair Value per Share Non-vested balance at beginning of period 349,613 $ 6.92 Granted - - Vested - - Forfeited - - Non-vested balance at end of period 349,613 $ 6.92 Additional information related to RSUs is as follows: June 30, 2024 (In thousands, except years) Unrecognized compensation expense related to RSUs $ 1,647 Weighted average remaining years to expense for RSUs 2.6 Dividend Reinvestment and Stock Purchase Plan In January 2024, 2021. nine June 30, 2024 2023 may June 30, 2024 Stock Buyback Program In August 2010, no August 2022, may not nine June 30, 2024 |
Note 11 - Earnings Per Share an
Note 11 - Earnings Per Share and Dividends Per Share | 9 Months Ended |
Jun. 30, 2024 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | ( 11 Earnings per Share and Dividends per Share The weighted average common shares outstanding used in the calculation of basic earnings per share and weighted average common shares outstanding, adjusted for common stock equivalents, used in the computation of diluted earnings per share were as follows: Three Months Ended June 30, 2024 2023 Weighted average common stock outstanding, basic 7,679,212 7,576,790 Dilutive impact of RSUs 52,856 28,899 Weighted average common stock outstanding, diluted 7,732,068 7,605,689 Nine Months Ended June 30, 2024 2023 Weighted average common stock outstanding, basic 7,675,821 7,574,528 Dilutive impact of RSUs 23,166 22,639 Weighted average common stock outstanding, diluted 7,698,987 7,597,167 For the three June 30, 2024 2023 not nine June 30, 2024 2023 not The Company paid a quarterly cash dividend of $0.1375 per share on June 5, 2024 , May 22, 2024. |
Note 12 - Recently Issued and A
Note 12 - Recently Issued and Adopted Accounting Standards | 9 Months Ended |
Jun. 30, 2024 | |
Notes to Financial Statements | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | ( 12 Recently Issued and Adopted Accounting Standards The Company has reviewed accounting pronouncements issued between the filing date of its most recent Form 10 December 7, 2023, 10 no In December 2023, 2023 09, 740 December 15, 2024, 2026. |
Note 13 - Subsequent Events
Note 13 - Subsequent Events | 9 Months Ended |
Jun. 30, 2024 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | ( 13 Subsequent Events The Company has evaluated subsequent events through the date these financial statements were issued and has concluded that no |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 9 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | |
Insider Trading Arr Line Items | ||
Material Terms of Trading Arrangement [Text Block] | Item 5. Other Information (c) Rule 10b5 1 During the three June 30, 2024 no 10b5 1 10b5 1 408 | |
Rule 10b5-1 Arrangement Adopted [Flag] | false | |
Non-Rule 10b5-1 Arrangement Adopted [Flag] | false | |
Rule 10b5-1 Arrangement Terminated [Flag] | false | |
Non-Rule 10b5-1 Arrangement Terminated [Flag] | false |
Note 4 - Fair Value Measureme_2
Note 4 - Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block] | June 30, 2024 Level 1 Level 2 Level 3 Total (In thousands) Money market fund deposits $ 60,159 $ - $ - $ 60,159 Mutual fund investments 11 - - 11 Total $ 60,170 $ - $ - $ 60,170 Amounts included in: Cash and cash equivalents $ 60,159 $ - $ - $ 60,159 Investments in marketable securities 11 - - 11 Total $ 60,170 $ - $ - $ 60,170 September 30, 2023 Level 1 Level 2 Level 3 Total (In thousands) Money market fund deposits $ 59,382 $ - $ - $ 59,382 Mutual fund investments 10 - - 10 Total $ 59,392 $ - $ - $ 59,392 Amounts included in: Cash and cash equivalents $ 59,382 $ - $ - $ 59,382 Investments in marketable securities 10 - - 10 Total $ 59,392 $ - $ - $ 59,392 |
Note 5 - Leases (Tables)
Note 5 - Leases (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Notes Tables | |
Schedule of Operating Lease Right of Use Assets Lease Liabilities and Other Supplemental Information [Table Text Block] | June 30, 2024 (In thousands, except years and percentages) Operating lease right-of-use assets $ 1,095 Current operating lease liability $ 293 Long-term operating lease liability $ 781 Weighted average remaining lease term 3.1 Weighted average discount rate 6.15 % Operating lease liabilities arising from obtaining right-of-use assets $ 1,055 |
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block] | June 30, 2024 (In thousands) Remainder of fiscal year 2024 $ 64 Fiscal year 2025 384 Fiscal year 2026 395 Fiscal year 2027 337 Total undiscounted cash flows 1,180 Present value discount (106 ) Total operating lease liabilities 1,074 |
Note 6 - Accrued Liabilities _2
Note 6 - Accrued Liabilities and Accounts Payable (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Notes Tables | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | June 30, 2024 September 30, 2023 (In thousands) Accrued bonus liabilities $ 1,992 $ 2,260 Accrued sub-advisor fees 354 310 Other accrued expenses 649 595 Total accrued liabilities and accounts payable $ 2,995 $ 3,165 |
Note 10 - Equity (Tables)
Note 10 - Equity (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Notes Tables | |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Nine Months Ended June 30, 2024 Shares Weighted Average Grant Date Fair Value per Share Non-vested balance at beginning of period 349,613 $ 6.92 Granted - - Vested - - Forfeited - - Non-vested balance at end of period 349,613 $ 6.92 June 30, 2024 (In thousands, except years) Unrecognized compensation expense related to RSUs $ 1,647 Weighted average remaining years to expense for RSUs 2.6 |
Note 11 - Earnings Per Share _2
Note 11 - Earnings Per Share and Dividends Per Share (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Notes Tables | |
Schedule of Weighted Average Number of Shares [Table Text Block] | Three Months Ended June 30, 2024 2023 Weighted average common stock outstanding, basic 7,679,212 7,576,790 Dilutive impact of RSUs 52,856 28,899 Weighted average common stock outstanding, diluted 7,732,068 7,605,689 Nine Months Ended June 30, 2024 2023 Weighted average common stock outstanding, basic 7,675,821 7,574,528 Dilutive impact of RSUs 23,166 22,639 Weighted average common stock outstanding, diluted 7,698,987 7,597,167 |
Note 1 - Basis of Financial S_2
Note 1 - Basis of Financial Statement Presentation (Details Textual) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Employee Retention Credit [Member] | |
Income Tax Credits and Adjustments | $ 0.3 |
Open-end Mutual Funds [Member] | |
Number of Funds | 16 |
Exchange-traded Fund [Member] | |
Number of Funds | 1 |
Note 2 - Management Contracts_2
Note 2 - Management Contracts Purchased (Details Textual) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 USD ($) | Sep. 30, 2023 USD ($) | Feb. 23, 2024 USD ($) | Nov. 10, 2023 USD ($) | |
Number of Purchases of Assets | 12 | |||
Number of Investment Funds | 33 | |||
Management Contracts Purchased, Impairment | $ 0 | $ 0 | ||
Stance ETF [Member] | ||||
Asset Acquisition, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $ 59,000 | $ 12,000 | ||
CCM Equity Funds [Member] | ||||
Legal Fees | $ 1,000 |
Note 3 - Investment Advisory _2
Note 3 - Investment Advisory Agreements (Details Textual) | 6 Months Ended |
Jun. 30, 2024 | |
Number of Open End Mutual Funds | 16 |
Notice Period for Termination of Agreement (Day) | 60 days |
Note 4 - Fair Value Measureme_3
Note 4 - Fair Value Measurements (Details Textual) $ in Millions | Jun. 30, 2024 USD ($) |
Notes Payable, Fair Value Disclosure | $ 39 |
Note 4 - Fair Value Measureme_4
Note 4 - Fair Value Measurements - Assets Categorized on Basis of Various Levels (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Assets, fair value | $ 60,170 | $ 59,392 |
Money Market Funds [Member] | ||
Assets, fair value | 60,159 | 59,382 |
Mutual Fund Investment [Member] | ||
Assets, fair value | 11 | 10 |
Cash and Cash Equivalents [Member] | ||
Assets, fair value | 60,159 | 59,382 |
Marketable Securities [Member] | ||
Assets, fair value | 11 | 10 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets, fair value | 60,170 | 59,392 |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ||
Assets, fair value | 60,159 | 59,382 |
Fair Value, Inputs, Level 1 [Member] | Mutual Fund Investment [Member] | ||
Assets, fair value | 11 | 10 |
Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member] | ||
Assets, fair value | 60,159 | 59,382 |
Fair Value, Inputs, Level 1 [Member] | Marketable Securities [Member] | ||
Assets, fair value | 11 | 10 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets, fair value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member] | ||
Assets, fair value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Mutual Fund Investment [Member] | ||
Assets, fair value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Cash and Cash Equivalents [Member] | ||
Assets, fair value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Marketable Securities [Member] | ||
Assets, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member] | ||
Assets, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Mutual Fund Investment [Member] | ||
Assets, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Cash and Cash Equivalents [Member] | ||
Assets, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Marketable Securities [Member] | ||
Assets, fair value | $ 0 | $ 0 |
Note 5 - Leases (Details Textua
Note 5 - Leases (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2024 | Jun. 30, 2024 | Sep. 30, 2023 | |
Operating Lease, Right-of-Use Asset | $ 1,095 | $ 295 | |
General and Administrative Expense [Member] | |||
Operating Lease, Expense | 400 | ||
Other Long-term Operating Leases [Member] | |||
Contractual Obligation | $ 0 | $ 0 | |
Office in Novato, California [Member] | |||
Lessee, Operating Lease, Renewal Term (Year) | 3 years | ||
Operating Lease, Right-of-Use Asset | $ 1,100 | ||
Lease Expiration Date | Jul. 31, 2027 |
Note 5 - Leases - Schedule of S
Note 5 - Leases - Schedule of Supplemental Lease Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2024 | Sep. 30, 2023 | |
Operating Lease, Right-of-Use Asset | $ 1,095 | $ 295 |
Current operating lease liability | 293 | 279 |
Long-term operating lease liability | $ 781 | $ 0 |
Weighted average remaining lease term (Year) | 3 years 1 month 6 days | |
Weighted average discount rate | 6.15% | |
Operating lease liabilities arising from obtaining right-of-use assets | $ 1,055 |
Note 5 - Leases - Schedule of F
Note 5 - Leases - Schedule of Future Maturities of Operating Lease Liabilities (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Remainder of fiscal year 2024 | $ 64 |
Fiscal year 2025 | 384 |
Fiscal year 2026 | 395 |
Fiscal year 2027 | 337 |
Total undiscounted cash flows | 1,180 |
Present value discount | (106) |
Total operating lease liabilities | $ 1,074 |
Note 6 - Accrued Liabilities _3
Note 6 - Accrued Liabilities and Accounts Payable - Schedule of Accrued Liabilities and Accounts Payable (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Accrued bonus liabilities | $ 1,992 | $ 2,260 |
Accrued sub-advisor fees | 354 | 310 |
Other accrued expenses | 649 | 595 |
Total accrued liabilities and accounts payable | $ 2,995 | $ 3,165 |
Note 7 - Debt Outstanding (Deta
Note 7 - Debt Outstanding (Details Textual) - The 2026 Notes [Member] | Oct. 20, 2021 USD ($) |
Debt Instrument, Interest Rate, Stated Percentage | 4.875% |
Debt Instrument, Face Amount | $ 40,250,000 |
Proceeds from Issuance of Debt | $ 38,607,000 |
Debt Instrument, Maturity Date | Dec. 31, 2026 |
Note 8 - Income Taxes (Details
Note 8 - Income Taxes (Details Textual) | 9 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Effective Income Tax Rate Reconciliation, Percent | 27.20% | 26.20% |
Note 9 - Commitments and Cont_2
Note 9 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Investment Company, Contractual Fee Waived | $ 100 | $ 100 |
Other Commitment | $ 0 |
Note 10 - Equity (Details Textu
Note 10 - Equity (Details Textual) - shares | 6 Months Ended | 9 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | Aug. 31, 2022 | Aug. 31, 2010 | |
Stock Buyback Program [Member] | ||||||
Share Repurchase Program, Authorized, Number of Shares (in shares) | 2,000,000 | 1,500,000 | ||||
Share Repurchase Program, Remaining Shares Authorized, Number of Shares (in shares) | 1,096,368 | |||||
Shares Repurchased During Period, Shares (in shares) | 0 | |||||
The Omnibus Plan [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 4 years | |||||
The Omnibus Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 4 years | |||||
The Omnibus Plan [Member] | Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 25% | |||||
Dividend Reinvestment and Stock Purchase Plan (DRSPP) [Member] | ||||||
Stock Issued During Period, Shares, Dividend Reinvestment Plan (in shares) | 9,908 | 6,691 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares) | 1,530,000 | |||||
Common Stock, Capital Shares Reserved for Future Issuance (in shares) | 1,523,962 | 1,523,962 |
Note 10 - Equity - Schedule of
Note 10 - Equity - Schedule of RSU Activity (Details) - Restricted Stock Units (RSUs) [Member] $ / shares in Units, $ in Thousands | 9 Months Ended |
Jun. 30, 2024 USD ($) $ / shares shares | |
Non-vested balance at beginning of period (in shares) | shares | 349,613 |
Non-vested balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 6.92 |
Granted (in shares) | shares | 0 |
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 0 |
Vested (in shares) | shares | 0 |
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 0 |
Forfeited (in shares) | shares | 0 |
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 0 |
Non-vested balance at end of period (in shares) | shares | 349,613 |
Non-vested balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 6.92 |
Unrecognized compensation expense related to RSUs | $ | $ 1,647 |
Weighted average remaining years to expense for RSUs (Year) | 2 years 7 months 6 days |
Note 11 - Earnings Per Share _3
Note 11 - Earnings Per Share and Dividends Per Share (Details Textual) - $ / shares | 3 Months Ended | 9 Months Ended | |||
Jun. 05, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share) | $ 0.1375 | ||||
O 2024 Q2 Dividends [Member] | |||||
Dividends Payable, Date of Record | Jun. 05, 2024 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0 | 231,560 | 177,653 | 99,869 |
Note 11 - Earnings Per Share _4
Note 11 - Earnings Per Share and Dividends Per Share - Schedule of Weighted Average Number Shares (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Weighted average common stock outstanding, basic (in shares) | 7,679,212 | 7,576,790 | 7,675,821 | 7,574,528 |
Dilutive impact of RSUs (in shares) | 52,856 | 28,899 | 23,166 | 22,639 |
Weighted average common stock outstanding, diluted (in shares) | 7,732,068 | 7,605,689 | 7,698,987 | 7,597,167 |