Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Dec. 05, 2022 | Mar. 31, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | HENNESSY ADVISORS, INC. | ||
Entity Central Index Key | 0001145255 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 45,182,641 | ||
Entity Common Stock, Shares Outstanding | 7,573,706 | ||
Document Transition Report | false | ||
Document Annual Report | true | ||
ICFR Auditor Attestation Flag | 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 | ||
Auditor Name | Marcum LLP | ||
Auditor Firm ID | 688 | ||
Auditor Location | Costa Mesa, CA | ||
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 | Sep. 30, 2022 | Sep. 30, 2021 |
Current assets | ||
Cash and cash equivalents | $ 58,487 | $ 15,836 |
Investments in marketable securities, at fair value | 9 | 10 |
Investment fee income receivable | 2,051 | 2,795 |
Prepaid expenses | 853 | 788 |
Other accounts receivable | 257 | 277 |
Total current assets | 61,657 | 19,706 |
Property and equipment, net of accumulated depreciation of $2,057 and $1,850, respectively | 320 | 311 |
Operating lease right-of-use asset | 651 | 1,010 |
Management contracts | 80,868 | 80,643 |
Other assets | 156 | 235 |
Total assets | 143,652 | 101,905 |
Current liabilities | ||
Accrued liabilities and accounts payable | 3,320 | 4,151 |
Accrued management contract payment | 210 | |
Operating lease liability | 367 | 359 |
Income taxes payable | 820 | 1,050 |
Total current liabilities | 4,717 | 5,560 |
Notes payable, net of issuance costs | 38,870 | |
Long-term operating lease liability | 279 | 646 |
Net deferred income tax liability | 13,488 | 12,437 |
Total liabilities | 57,354 | 18,643 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity | ||
Common stock, no par value, 22,500,000 shares authorized; 7,571,741 shares issued and outstanding as of September 30, 2022, and 7,469,584 as of September 30, 2021 | 20,951 | 19,964 |
Retained earnings | 65,347 | 63,298 |
Total stockholders' equity | 86,298 | 83,262 |
Total liabilities and stockholders' equity | $ 143,652 | $ 101,905 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Property and equipment, accumulated depreciation | $ 2,057 | $ 1,850 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares authorized | 22,500,000 | 22,500,000 |
Common stock, shares issued | 7,571,741 | 7,469,584 |
Common stock, shares outstanding | 7,571,741 | 7,469,584 |
Statements of Income
Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue | ||
Total revenue | $ 29,667 | $ 32,760 |
Operating expenses | ||
Compensation and benefits | 8,322 | 9,078 |
General and administrative | 5,036 | 4,754 |
Mutual fund distribution | 536 | 485 |
Sub-advisory fees | 5,727 | 7,332 |
Depreciation | 207 | 232 |
Total operating expenses | 19,828 | 21,881 |
Net operating income | 9,839 | 10,879 |
Interest expense | 2,122 | 0 |
Other income | (229) | (2) |
Income before income tax expense | 7,946 | 10,881 |
Income tax expense | 1,756 | 2,979 |
Net income | $ 6,190 | $ 7,902 |
Earnings per share | ||
Basic | $ 0.83 | $ 1.07 |
Diluted | $ 0.82 | $ 1.07 |
Weighted average shares outstanding | ||
Basic | 7,483,342 | 7,367,948 |
Diluted | 7,558,008 | 7,409,112 |
Cash dividends declared per share | $ 0.55 | $ 0.55 |
Investment advisory fees [Member] | ||
Revenue | ||
Total revenue | $ 27,468 | $ 30,367 |
Shareholder service fees [Member] | ||
Revenue | ||
Total revenue | $ 2,199 | $ 2,393 |
Statements of Changes in Stockh
Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | 2018 Dividend Reinvestment And Stock Purchase Plan [Member] | 2021 Dividend Reinvestment And Stock Purchase Plan [Member] | Common Stock [Member] | Common Stock [Member] 2018 Dividend Reinvestment And Stock Purchase Plan [Member] | Common Stock [Member] 2021 Dividend Reinvestment And Stock Purchase Plan [Member] | Retained Earnings [Member] |
Beginning balance at Sep. 30, 2020 | $ 78,178 | $ 18,705 | $ 59,473 | ||||
Beginning balance, Shares at Sep. 30, 2020 | 7,356,822 | ||||||
Net income | 7,902 | 7,902 | |||||
Dividends paid | (4,049) | (4,049) | |||||
Employee and director restricted stock vested, Shares | 132,588 | ||||||
Repurchase of vested employee restricted stock for tax withholding | (322) | $ (294) | (28) | ||||
Repurchase of vested employee restricted stock for tax withholding, Shares | (32,492) | ||||||
Shares issued for auto-investments pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan | $ 9 | $ 29 | $ 9 | $ 29 | |||
Shares issued for auto-investments pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan, Shares | 958 | 3,219 | |||||
Shares issued for dividend reinvestment pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan | $ 19 | 58 | $ 19 | $ 58 | |||
Shares issued for dividend reinvestment pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan, Shares | 2,165 | 6,324 | |||||
Stock-based compensation | 1,438 | $ 1,438 | |||||
Ending balance at Sep. 30, 2021 | 83,262 | $ 19,964 | 63,298 | ||||
Ending balance, shares at Sep. 30, 2021 | 7,469,584 | ||||||
Net income | 6,190 | 6,190 | |||||
Dividends paid | (4,113) | (4,113) | |||||
Employee and director restricted stock vested, Shares | 132,263 | ||||||
Repurchase of vested employee restricted stock for tax withholding | (356) | $ (328) | (28) | ||||
Repurchase of vested employee restricted stock for tax withholding, Shares | (37,718) | ||||||
Shares issued for auto-investments pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan | 5 | $ 5 | |||||
Shares issued for auto-investments pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan, Shares | 471 | ||||||
Shares issued for dividend reinvestment pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan | $ 74 | $ 74 | |||||
Shares issued for dividend reinvestment pursuant to the 2018(2021) Dividend Reinvestment and Stock Purchase Plan, Shares | 7,141 | ||||||
Stock-based compensation | 1,252 | $ 1,252 | |||||
Employee restricted stock forfeiture | (16) | (16) | |||||
Ending balance at Sep. 30, 2022 | $ 86,298 | $ 20,951 | $ 65,347 | ||||
Ending balance, shares at Sep. 30, 2022 | 7,571,741 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities | ||
Net income | $ 6,190 | $ 7,902 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation | 207 | 232 |
Change in right-of-use asset and operating lease liability | (59) | |
Amortization of note issuance costs | 263 | |
Deferred income taxes | 1,051 | 921 |
Deferred offering costs | (11) | |
Employee restricted stock forfeiture | (16) | |
Stock-based compensation | 1,252 | 1,438 |
Unrealized loss (gain) on marketable securities | 1 | (1) |
Change in operating assets and liabilities: | ||
Investment fee income receivable | 744 | (392) |
Prepaid expenses | (65) | (151) |
Other accounts receivable | 20 | 101 |
Other assets | 79 | (33) |
Accrued liabilities and accounts payable | (831) | 338 |
Income taxes payable | (230) | 101 |
Net cash provided by operating activities | 8,665 | 10,386 |
Cash flows from investing activities | ||
Purchases of property and equipment | (216) | (249) |
Payments related to management contracts | (15) | |
Net cash used in investing activities | (231) | (249) |
Cash flows from financing activities | ||
Proceeds from issuance of notes, net of underwriting discount | 39,042 | |
Payment of issuance costs on notes | (435) | |
Repurchase of vested employee restricted stock for tax withholding | (356) | (322) |
Dividend payments | (4,039) | (3,972) |
Net cash provided by (used in) financing activities | 34,217 | (4,256) |
Net increase in cash and cash equivalents | 42,651 | 5,881 |
Cash and cash equivalents at the beginning of the period | 15,836 | 9,955 |
Cash and cash equivalents at the end of the period | 58,487 | 15,836 |
Supplemental disclosures of cash flow information | ||
Cash paid for income taxes | 938 | 1,957 |
Cash paid for interest | 1,859 | |
Dividend investment issued in shares | 74 | 77 |
Non-cash payment related to management contract (Note 17) | 210 | |
2018 Dividend Reinvestment And Stock Purchase Plan [Member] | ||
Cash flows from financing activities | ||
Proceeds from shares issued | 9 | |
2021 Dividend Reinvestment And Stock Purchase Plan [Member] | ||
Cash flows from financing activities | ||
Proceeds from shares issued | $ 5 | $ 29 |
Organization and Description of
Organization and Description of Business and Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business and Significant Accounting Policies | (1) Organization and Description of Business and Significant Accounting Policies (a) Organization and Description of Business Hennessy Advisors, Inc. (the “Company”) was founded on February 1, 1989, as a California corporation under the name Edward J. Hennessy, Incorporated. In 1990, the Company became a registered investment advisor, and on April 15, 2001, the Company changed its name to Hennessy Advisors, Inc. The Company’s operating activities consist primarily of providing investment advisory services to 16 open-end 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), on-site 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 • 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 Funds by, among other things, maintaining a toll-free The Company waived a portion of its fees with respect to the Hennessy Energy Transition Fund through the expiration of the fund’s expense limitation agreement on October 25, 2020. The Company continues to waive a portion of its fees with respect to the Hennessy Midstream Fund and the Hennessy Technology Fund 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. (b) Cash and Cash Equivalents Cash and cash equivalents include all cash balances and highly liquid investments with original maturities of three months or less that are readily convertible into cash. (c) Fair Value of Financial Instruments The Financial Accounting Standards Board (“FASB”) guidance on “Disclosures about Fair Value of Financial Instruments” requires disclosures regarding the fair value of all financial instruments for financial statement purposes. The estimates presented in these financial statements are based on information available to management as of the end of fiscal years 2022 and 2021. Accordingly, the fair values presented in the Company’s financial statements as of the end of fiscal years 2022 and 2021 may not be indicative of amounts that could be realized on disposition of the financial instruments. The fair value of receivables, accounts payable, and notes payable has been estimated at carrying value due to the short maturity of these instruments. The fair value of marketable securities and money market accounts is based on closing net asset values as reported by securities exchanges registered with the SEC. (d) Investments Investments in highly-liquid long-term The Company holds investments in publicly traded mutual funds, which are accounted for as trading securities. Accordingly, unrealized gains and losses of less than $1,000 per year were recognized in operations for fiscal years 2022 and 2021. Dividend income is recorded on the ex-dividend trade-date (e) Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally between one and ten years. (f) Management Contracts Purchased Throughout its history, the Company has completed 10 purchases of the assets related to the management of 30 different mutual funds, some of which were reorganized into already existing Hennessy Funds. In accordance with 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 by applying the income approach and is based on management estimates and assumptions, including third-party valuations that utilize appropriate valuation techniques. It was determined that there was no impairment as of the end of fiscal years 2022 and 2021. 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 considers the management contracts asset to be an intangible asset with an indefinite useful life and no impairment as of the end of fiscal year 2022. (g) Income Taxes The Company, under the FASB guidance on “Accounting for Uncertainty in Income Tax,” uses a recognition threshold and measurement attribute for the financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in a company’s income tax return and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company utilizes a two-step The Company believes the positions taken on its tax returns are fully supported, but tax authorities may challenge these positions and they may not be fully sustained on examination by the relevant tax authorities. Accordingly, the income tax provision includes amounts intended to satisfy assessments that may result from these challenges. Determining the income tax provision for these potential assessments and recording the related effects requires management judgement and estimates. The amounts ultimately paid on resolution of an audit could be materially different from the amounts previously included in the income tax provision and, therefore, could have a material impact on the Company’s income tax provision, net income, and cash flows. The accrual for uncertain tax positions is attributable primarily to uncertainties concerning the tax treatment of the Company’s domestic operations, including the allocation of income among different jurisdictions. For a further discussion on taxes, refer to Note 11 in this Item 8, “Financial Statements and Supplementary Data.” The Company is subject to income tax in the U.S. federal jurisdiction and multiple state jurisdictions. The Company’s U.S. federal income taxes for 2018 through 2022 remain open and subject to examination. The Company has identified 22 major state tax jurisdictions in which it is subject to income tax, which include California, Colorado, Connecticut, District of Columbia, Florida, Georgia, Illinois, Indiana, Iowa, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Texas, and Wisconsin. For tax years that remain open, the below chart shows the number of such state tax jurisdictions that remain subject to examination by the appropriate governmental agencies: Year Number of State Tax 2022 22 2021 22 2020 22 2019 19 2018 17 For state tax jurisdictions with unfiled tax returns, the statutes of limitations remains open indefinitely. (h) Earnings 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 restricted stock units (“RSUs”). (i) 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”), which provides for the issuance of options, stock appreciation rights, restricted stock, RSUs, performance awards, and other equity awards for the purpose of attracting and retaining executive officers, key employees, and outside directors and advisors and increasing shareholder value. The maximum number of shares that may be issued under the Omnibus Plan is 50% of the number of outstanding shares of common stock of the Company, subject to adjustment by the compensation committee of the Company’s Board of Directors upon the occurrence of certain events. The 50% limitation does not invalidate any awards made prior to a decrease in the number of outstanding shares, even if such awards have result or may result in shares constituting more than 50% of the outstanding shares being available for issuance under the Omnibus Plan. Shares available under the Omnibus Plan that are not awarded in one particular year may be awarded in subsequent years. The compensation committee of the Company’s Board of Directors has the authority to determine the awards granted under the Omnibus Plan, including among other things, the individuals who receive the awards, the times when they receive them, vesting schedules, performance goals, whether an option is an incentive or nonqualified option, and the number of shares to be subject to each award. However, no participant may receive options or stock appreciation rights under the Omnibus Plan for an aggregate of more than 75,000 shares in any calendar year. The exercise price and term of each option or stock appreciation right is fixed by the compensation committee except that the exercise price for each stock option that is intended to qualify as an incentive stock option must be at least equal to the fair market value of the stock on the date of grant and the term of the option cannot exceed 10 years. In the case of an incentive stock option granted to a 10% or more shareholder, the exercise price must be at least 110% of the fair market value on the date of grant and cannot exceed five years. Incentive stock options may be granted only within 10 years from the date of shareholder approval of the Omnibus Plan (which was March 2014). The aggregate fair market value (determined at the time the option is granted) of shares with respect to which incentive stock options may be granted to any one individual, which stock options are exercisable for the first time during any calendar year, may not exceed $100,000. An optionee may, with the consent of the compensation committee, elect to pay for the shares to be received upon exercise of his or her options in cash, shares of common stock, or any combination thereof. Under the Omnibus Plan, participants may be granted RSUs, each of which represents an unfunded, unsecured right to receive a share of the Company’s common stock on the date specified in the recipient’s award. The Company issues new shares of its common stock when it is required to deliver shares to an RSU recipient. The RSUs granted under the Omnibus Plan vest over four years at a rate of 25% per year. The Company recognizes stock-based straight-line All compensation costs related to RSUs vested during fiscal years 2022 and 2021 have been recognized in the financial statements. The Company has available up to 3,785,871 A summary of RSU activity is as follows: Fiscal Years Ended September 30, 2022 2021 Shares Weighted Average Shares Weighted Average Non-vested 323,810 $ 8.87 322,181 $ 9.76 Granted 132,875 7.72 134,625 8.64 Vested (1) (133,207 ) (9.42 ) (132,996 ) (10.81 ) Forfeited (7,917 ) (8.76 ) — — Non-vested 315,561 $ 8.15 323,810 $ 8.87 (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: September 30, 2022 (In thousands, except years) Total expected compensation expense related to RSUs $ 18,143 Recognized compensation expense related to RSUs (15,570 ) Unrecognized compensation expense related to RSUS $ 2,573 Weighted average remaining period to expense for RSUs 3.0 Dividend Reinvestment and Stock Purchase Plan In January 2021, the Company adopted an updated 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 and shares of common stock in fiscal years 2022 and 2021, respectively. The maximum number of shares that may be issued under the DRSPP is , of which shares remained available for issuance as of September 30, 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 does not have an 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 fiscal year 2022. (j) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (2) 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 table represents the Company’s assets categorized in the Level 1 to Level 3 hierarchies: 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 September 30, 2021 Level 1 Level 2 Level 3 Total (In thousands) Money market fund deposits $ 11,554 $ — $ — $ 11,554 Mutual fund investments 10 — — 10 Total $ 11,564 $ — $ — $ 11,564 Amounts included in Cash and cash equivalents $ 11,554 $ — $ — $ 11,554 Investments in marketable securities 10 — — 10 Total $ 11,564 $ — $ — $ 11,564 There were no transfers between levels during fiscal years 2022 or 2021. 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 9 in this Item 8, “Financial Statements and Supplementary Data”) was approximately $ 37.3 million as of September 30, 2022, based on the last trading price of the notes on that date (Level 1). |
Investments
Investments | 12 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | (3) Investments The cost, gross unrealized gains, gross unrealized losses, and fair market value of the Company’s trading investments were as follows: Cost Gross Gross Total (In thousands) 2022 Mutual fund investments $ 4 $ 24 $ (19 ) $ 9 Total 4 24 (19 ) 9 2021 Mutual fund investments $ 4 $ 24 $ (18 ) $ 10 Total 4 24 (18 ) 10 The mutual fund investments are included as a separate line item in current assets on the Company’s balance sheets. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | (4) Property and Equipment, Net The following table summarizes the Company’s property and equipment balances: September 30, 2022 2021 (In thousands) Equipment $ 703 $ 599 Leasehold improvements 154 154 Furniture and fixtures 396 391 IT infrastructure 85 84 Software 1,039 933 Property and equipment, gross 2,377 2,161 Accumulated depreciation (2,057 ) (1,850 ) Property and equipment, net $ 320 $ 311 During each of fiscal year 2022 and fiscal year 2021, depreciation expense was $0.2 million. |
Management Contracts
Management Contracts | 12 Months Ended |
Sep. 30, 2022 | |
Text Block [Abstract] | |
Management Contracts | (5) Management Contracts The costs related to the Company’s purchase of the assets related to management contracts are capitalized as incurred and comprise the management contracts asset. This asset was $80.9 million as of the end of fiscal year 2022, an of contracts. |
Investment Advisory Agreements
Investment Advisory Agreements | 12 Months Ended |
Sep. 30, 2022 | |
Text Block [Abstract] | |
Investment Advisory Agreements | (6) Investment Advisory Agreements The Company has investment advisory agreements with Hennessy Funds Trust under which it provides investment advisory services to Hennessy Funds. The investment advisory agreements must be renewed annually (except in limited circumstances) by (a) the Funds’ Board of 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 Effective January 31, 2022, the Company and BP Capital Fund Services, LLC mutually agreed to terminate the sub-advisory the Company. |
Leases
Leases | 12 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | (7) 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 September 30, 2022 (In thousands, Operating lease right-of-use $ 651 Current operating lease liability $ 367 Long-term operating lease liability $ 279 Weighted average remaining lease term 1.8 Weighted average discount rate 0.90 % For fiscal its right-of-use 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: September 30, 2022 (In thousands) Fiscal year 2023 undiscounted cash flows 374 Fiscal year 2024 286 Total undiscounted cash flows 660 Present value discount (14 ) Total operating lease liabilities $ 646 |
Accrued Liabilities and Account
Accrued Liabilities and Accounts Payable | 12 Months Ended |
Sep. 30, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities and Accounts Payable | (8) Accrued Liabilities and Accounts Payable Details relating to the accrued liabilities and accounts payable reflected on the Company’s balance sheet are as follows: September 30 2022 2021 (In thousands) Accrued bonus liabilities $ 2,207 $ 2,738 Accrued sub-advisor 336 628 Other accrued expenses 777 785 Total accrued expenses $ 3,320 $ 4,151 |
Debt Outstanding
Debt Outstanding | 12 Months Ended |
Sep. 30, 2022 | |
Debt Instruments [Abstract] | |
Debt Outstanding | (9) 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 Notes are direct unsecured obligations, rank equally in right of payment with any of the Company’s future unsecured unsubordinated indebtedness, senior to any of the Company’s future indebtedness that expressly provides that it is subordinate to the 2026 Notes, effectively subordinate to all of the Company’s existing and future secured indebtedness, and structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s future subsidiaries. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (10) Commitments and Contingencies Other than the operating leases discussed in Note 7 in this Item 8, “Financial Statements and Supplementary Data,” the Company has no commitments and no significant contingencies with original terms in excess of one year. |
Retirement Plan
Retirement Plan | 12 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Plan | (11) Retirement Plan The Company has a 401(k) retirement plan covering eligible employees. Employees are eligible to participate if they are over 21 years of age and have completed a minimum of one month of service with at least 80 hours worked in that month. The Company also made discretionary profit-sharing contributions of $0.2 million in each of the fiscal years 2022 and 2021. To be eligible for the discretionary profit-sharing contribution, an employee must be eligible to participate in the 401(k) retirement plan and must complete at least 501 hours of service during the calendar year or be employed as of the last day of the calendar year. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (12) Income Taxes As of the end of each of fiscal years 2022 and 2021, the Company’s gross liability for unrecognized tax benefits related to uncertain tax positions was $0.4 million and $0.6 million, respectively. If the tax benefits of such amounts were recognized, $0.3 million and $0.5 million of such amounts, respectively, would decrease the Company’s effective income tax rate. The Company’s net liability for accrued interest and penalties was $0.3 million as of each of The Company’s activity was as follows: Fiscal Years Ended September 30, 2022 2021 (In thousands) Beginning year balance $ 608 $ 608 Decrease related to prior year tax positions (255 ) — Increase related to current year tax positions — — Settlements — — Lapse of statutes of limitations — — Ending year balance $ 353 $ 608 The total amount of unrecognized tax benefits can change due to final regulations, audit settlements, tax examinations activities, lapse of applicable statutes of limitations, and the recognition and measurement criteria under the guidance related to accounting for uncertainly in income taxes. The Company is unable to estimate what this change could be within the next 12 months, but does not believe it would be material to its financial statements. The Company’s income tax expense was as follows: Fiscal Years Ended September 30, 2022 2021 (In thousands) Current Federal $ 855 $ 1,545 State (149 ) 513 Total Current 706 2,058 Deferred Federal 888 752 State 162 169 Total Deferred 1,050 921 Total $ 1,756 $ 2,979 The principal reasons for the differences from the federal statutory income tax rate and the Company’s effective tax rate were as follows: Fiscal Years Ended September 30, 2022 2021 Federal statutory income tax rate 21.0% 21.0% State income taxes, net of federal benefit 3.9 4.3 Permanent and other differences 0.4 0.2 Difference due to executive compensation 1.0 1.1 Tax return to provision adjustments (1.3) (0.1) Uncertain tax position allowance (3.0) 0.4 Stock-based compensation 0.1 1.6 Effective income tax rate 22.1% 28.5% The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities were as follows: Fiscal Years Ended September 30, 2022 2021 (In thousands) Deferred tax assets Accrued compensation $ 40 $ 60 Stock compensation 20 2 State taxes 175 266 Capital loss carryforward 7 7 ROU asset/lease liability (1 ) (1 ) Gross deferred tax assets 241 334 Disallowed capital loss (7 ) (7 ) Net deferred tax assets 234 327 Deferred tax liabilities Property and equipment (35 ) (33 ) Management contracts (13,687 ) (12,731 ) Total deferred tax liabilities (13,722 ) (12,764 ) Net deferred tax liabilities $ (13,488 ) $ (12,437 ) |
Earnings per Share
Earnings per Share | 12 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share | (13) Earnings 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: September 30, 2022 2021 Weighted average common stock outstanding, basic 7,483,342 7,367,948 Dilutive impact of RSUs 74,666 41,164 Weighted average common stock outstanding, diluted 7,558,008 7,409,112 For fiscal years 2022 and 2021, the Company excluded 282 and 65,098 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 vested RSUs. (14) Concentration of Credit Risk |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Sep. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | The Company maintains its cash accounts with three commercial banks that, at times, may exceed federally insured limits. The amount on deposit at September , , exceeded the insurance limits of the Federal Deposit Insurance Corporation by approximately $ million. In addition, total cash and cash equivalents include $ million held in the First American U.S. Government Money Market Fund that is not federally insured. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents. |
Recently Issued and Adopted Acc
Recently Issued and Adopted Accounting Standards | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued and Adopted Accounting Standards | (15) Recently Issued and Adopted Accounting Standards The Company has reviewed accounting pronouncements issued between November 24, 2021, the filing date of its most recent previously filed Annual Report on Form 10-K, 10-K, has There have been no other significant changes to the Company’s critical accounting policies and estimates during fiscal year 2022. |
Risk and Uncertainties –
Risk and Uncertainties – COVID-19 and Geopolitical Tensions | 12 Months Ended |
Sep. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Risk and Uncertainties – COVID-19 and Geopolitical Tensions | (16) Risk and Uncertainties – COVID-19 In March 2020, the World Health Organization declared a global health pandemic related to the outbreak of a novel coronavirus. There is uncertainty around the duration and breadth of the COVID-19 The short and long-term implications of Russia’s invasion of Ukraine are difficult to predict. The imposition of sanctions and counter sanctions may have an adverse effect on the economic markets generally and could impact the Company’s business, financial condition, and results of operations. Because of the highly uncertain and dynamic nature of these events, the impact of Russia’s invasion of Ukraine on the Company’s business, financial condition, or operating results cannot be reasonably estimated at this time. |
Pending Asset Purchase of the S
Pending Asset Purchase of the Stance Equity ESG Large Cap Core ETF | 12 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Pending Asset Purchase of the Stance Equity ESG Large Cap Core ETF | (17) Pending Asset Purchase of the Stance Equity ESG Large Cap Core ETF On August 29, 2022, the Company announced that it signed a definitive agreement with Stance Capital, LLC and Red Gate Advisers, LLC, among others, to purchase the assets related to the management of the Stance Equity ESG Large Cap Core ETF. The Company filed a Current Report on Form 8-K Upon completion of the transaction, the assets related to the Stance Equity ESG Large Cap Core ETF will be reorganized to become a series of Hennessy Funds Trust named the Hennessy Stance ESG Large Cap ETF. The transaction is subject to customary closing conditions, including SEC approval of an exemptive order allowing the Hennessy Stance ESG Large Cap ETF to operate under the Portfolio Reference Basket structure licensed by the Blue Tractor Group, as well as approval by the Board of Trustees of Hennessy Funds Trust, the Board of Directors of The RBB Fund, Inc. (of which the Stance Equity ESG Large Cap Core ETF is a series), and the shareholders of the Stance Equity ESG Large Cap Core ETF. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | (18) Subsequent Events As of December 7, 2022, the filing date of this Annual Report on Form 10-K, On October 27, 2022, the Company announced a quarterly cash dividend of $0.1375 per share paid on November 30, 2022, to shareholders of record as of November 15, 2022. The declaration and payment of dividends to holders of the Company’s common stock, if any, are subject to the discretion of the Company’s Board of Directors. The Company’s Board of Directors will take into account such matters as general economic and business conditions, the Company’s strategic plans, the Company’s financial results and condition, contractual, legal, and regulatory restrictions on the payment of dividends by the Company, and such other factors as the Company’s Board of Directors may consider relevant. |
Organization and Description _2
Organization and Description of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | (a) Organization and Description of Business Hennessy Advisors, Inc. (the “Company”) was founded on February 1, 1989, as a California corporation under the name Edward J. Hennessy, Incorporated. In 1990, the Company became a registered investment advisor, and on April 15, 2001, the Company changed its name to Hennessy Advisors, Inc. The Company’s operating activities consist primarily of providing investment advisory services to 16 open-end 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), on-site 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 • 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 Funds by, among other things, maintaining a toll-free The Company waived a portion of its fees with respect to the Hennessy Energy Transition Fund through the expiration of the fund’s expense limitation agreement on October 25, 2020. The Company continues to waive a portion of its fees with respect to the Hennessy Midstream Fund and the Hennessy Technology Fund 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. |
Cash and Cash Equivalents | (b) Cash and Cash Equivalents Cash and cash equivalents include all cash balances and highly liquid investments with original maturities of three months or less that are readily convertible into cash. |
Fair Value of Financial Instruments | (c) Fair Value of Financial Instruments The Financial Accounting Standards Board (“FASB”) guidance on “Disclosures about Fair Value of Financial Instruments” requires disclosures regarding the fair value of all financial instruments for financial statement purposes. The estimates presented in these financial statements are based on information available to management as of the end of fiscal years 2022 and 2021. Accordingly, the fair values presented in the Company’s financial statements as of the end of fiscal years 2022 and 2021 may not be indicative of amounts that could be realized on disposition of the financial instruments. The fair value of receivables, accounts payable, and notes payable has been estimated at carrying value due to the short maturity of these instruments. The fair value of marketable securities and money market accounts is based on closing net asset values as reported by securities exchanges registered with the SEC. |
Investments | (d) Investments Investments in highly-liquid long-term The Company holds investments in publicly traded mutual funds, which are accounted for as trading securities. Accordingly, unrealized gains and losses of less than $1,000 per year were recognized in operations for fiscal years 2022 and 2021. Dividend income is recorded on the ex-dividend trade-date |
Property and Equipment | (e) Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally between one and ten years. |
Management Contracts Purchased | (f) Management Contracts Purchased Throughout its history, the Company has completed 10 purchases of the assets related to the management of 30 different mutual funds, some of which were reorganized into already existing Hennessy Funds. In accordance with 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 by applying the income approach and is based on management estimates and assumptions, including third-party valuations that utilize appropriate valuation techniques. It was determined that there was no impairment as of the end of fiscal years 2022 and 2021. 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 considers the management contracts asset to be an intangible asset with an indefinite useful life and no impairment as of the end of fiscal year 2022. |
Income Taxes | (g) Income Taxes The Company, under the FASB guidance on “Accounting for Uncertainty in Income Tax,” uses a recognition threshold and measurement attribute for the financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in a company’s income tax return and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company utilizes a two-step The Company believes the positions taken on its tax returns are fully supported, but tax authorities may challenge these positions and they may not be fully sustained on examination by the relevant tax authorities. Accordingly, the income tax provision includes amounts intended to satisfy assessments that may result from these challenges. Determining the income tax provision for these potential assessments and recording the related effects requires management judgement and estimates. The amounts ultimately paid on resolution of an audit could be materially different from the amounts previously included in the income tax provision and, therefore, could have a material impact on the Company’s income tax provision, net income, and cash flows. The accrual for uncertain tax positions is attributable primarily to uncertainties concerning the tax treatment of the Company’s domestic operations, including the allocation of income among different jurisdictions. For a further discussion on taxes, refer to Note 11 in this Item 8, “Financial Statements and Supplementary Data.” The Company is subject to income tax in the U.S. federal jurisdiction and multiple state jurisdictions. The Company’s U.S. federal income taxes for 2018 through 2022 remain open and subject to examination. The Company has identified 22 major state tax jurisdictions in which it is subject to income tax, which include California, Colorado, Connecticut, District of Columbia, Florida, Georgia, Illinois, Indiana, Iowa, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Texas, and Wisconsin. For tax years that remain open, the below chart shows the number of such state tax jurisdictions that remain subject to examination by the appropriate governmental agencies: Year Number of State Tax 2022 22 2021 22 2020 22 2019 19 2018 17 For state tax jurisdictions with unfiled tax returns, the statutes of limitations remains open indefinitely. |
Earnings Per Share | (h) Earnings 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 restricted stock units (“RSUs”). |
Equity | (i) 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”), which provides for the issuance of options, stock appreciation rights, restricted stock, RSUs, performance awards, and other equity awards for the purpose of attracting and retaining executive officers, key employees, and outside directors and advisors and increasing shareholder value. The maximum number of shares that may be issued under the Omnibus Plan is 50% of the number of outstanding shares of common stock of the Company, subject to adjustment by the compensation committee of the Company’s Board of Directors upon the occurrence of certain events. The 50% limitation does not invalidate any awards made prior to a decrease in the number of outstanding shares, even if such awards have result or may result in shares constituting more than 50% of the outstanding shares being available for issuance under the Omnibus Plan. Shares available under the Omnibus Plan that are not awarded in one particular year may be awarded in subsequent years. The compensation committee of the Company’s Board of Directors has the authority to determine the awards granted under the Omnibus Plan, including among other things, the individuals who receive the awards, the times when they receive them, vesting schedules, performance goals, whether an option is an incentive or nonqualified option, and the number of shares to be subject to each award. However, no participant may receive options or stock appreciation rights under the Omnibus Plan for an aggregate of more than 75,000 shares in any calendar year. The exercise price and term of each option or stock appreciation right is fixed by the compensation committee except that the exercise price for each stock option that is intended to qualify as an incentive stock option must be at least equal to the fair market value of the stock on the date of grant and the term of the option cannot exceed 10 years. In the case of an incentive stock option granted to a 10% or more shareholder, the exercise price must be at least 110% of the fair market value on the date of grant and cannot exceed five years. Incentive stock options may be granted only within 10 years from the date of shareholder approval of the Omnibus Plan (which was March 2014). The aggregate fair market value (determined at the time the option is granted) of shares with respect to which incentive stock options may be granted to any one individual, which stock options are exercisable for the first time during any calendar year, may not exceed $100,000. An optionee may, with the consent of the compensation committee, elect to pay for the shares to be received upon exercise of his or her options in cash, shares of common stock, or any combination thereof. Under the Omnibus Plan, participants may be granted RSUs, each of which represents an unfunded, unsecured right to receive a share of the Company’s common stock on the date specified in the recipient’s award. The Company issues new shares of its common stock when it is required to deliver shares to an RSU recipient. The RSUs granted under the Omnibus Plan vest over four years at a rate of 25% per year. The Company recognizes stock-based straight-line All compensation costs related to RSUs vested during fiscal years 2022 and 2021 have been recognized in the financial statements. The Company has available up to 3,785,871 A summary of RSU activity is as follows: Fiscal Years Ended September 30, 2022 2021 Shares Weighted Average Shares Weighted Average Non-vested 323,810 $ 8.87 322,181 $ 9.76 Granted 132,875 7.72 134,625 8.64 Vested (1) (133,207 ) (9.42 ) (132,996 ) (10.81 ) Forfeited (7,917 ) (8.76 ) — — Non-vested 315,561 $ 8.15 323,810 $ 8.87 (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: September 30, 2022 (In thousands, except years) Total expected compensation expense related to RSUs $ 18,143 Recognized compensation expense related to RSUs (15,570 ) Unrecognized compensation expense related to RSUS $ 2,573 Weighted average remaining period to expense for RSUs 3.0 Dividend Reinvestment and Stock Purchase Plan In January 2021, the Company adopted an updated 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 and shares of common stock in fiscal years 2022 and 2021, respectively. The maximum number of shares that may be issued under the DRSPP is , of which shares remained available for issuance as of September 30, 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 does not have an 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 fiscal year 2022. |
Use of Estimates | (j) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Organization and Description _3
Organization and Description of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Disclosure Of Number Of State Tax Jurisdictions That Remain Open To Examination [Table Text Block] | Year Number of State Tax 2022 22 2021 22 2020 22 2019 19 2018 17 |
Schedule of Non-Vested Restricted Stock Units Activity | A summary of RSU activity is as follows: Fiscal Years Ended September 30, 2022 2021 Shares Weighted Average Shares Weighted Average Non-vested 323,810 $ 8.87 322,181 $ 9.76 Granted 132,875 7.72 134,625 8.64 Vested (1) (133,207 ) (9.42 ) (132,996 ) (10.81 ) Forfeited (7,917 ) (8.76 ) — — Non-vested 315,561 $ 8.15 323,810 $ 8.87 (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: September 30, 2022 (In thousands, except years) Total expected compensation expense related to RSUs $ 18,143 Recognized compensation expense related to RSUs (15,570 ) Unrecognized compensation expense related to RSUS $ 2,573 Weighted average remaining period to expense for RSUs 3.0 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Assets Categorized on Basis of Various Levels | Based on the definitions, the following table represents the Company’s assets categorized in the Level 1 to Level 3 hierarchies: 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 September 30, 2021 Level 1 Level 2 Level 3 Total (In thousands) Money market fund deposits $ 11,554 $ — $ — $ 11,554 Mutual fund investments 10 — — 10 Total $ 11,564 $ — $ — $ 11,564 Amounts included in Cash and cash equivalents $ 11,554 $ — $ — $ 11,554 Investments in marketable securities 10 — — 10 Total $ 11,564 $ — $ — $ 11,564 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Trading Investments Details | Cost Gross Gross Total (In thousands) 2022 Mutual fund investments $ 4 $ 24 $ (19 ) $ 9 Total 4 24 (19 ) 9 2021 Mutual fund investments $ 4 $ 24 $ (18 ) $ 10 Total 4 24 (18 ) 10 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | The following table summarizes the Company’s property and equipment balances: September 30, 2022 2021 (In thousands) Equipment $ 703 $ 599 Leasehold improvements 154 154 Furniture and fixtures 396 391 IT infrastructure 85 84 Software 1,039 933 Property and equipment, gross 2,377 2,161 Accumulated depreciation (2,057 ) (1,850 ) Property and equipment, net $ 320 $ 311 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 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 September 30, 2022 (In thousands, Operating lease right-of-use $ 651 Current operating lease liability $ 367 Long-term operating lease liability $ 279 Weighted average remaining lease term 1.8 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: September 30, 2022 (In thousands) Fiscal year 2023 undiscounted cash flows 374 Fiscal year 2024 286 Total undiscounted cash flows 660 Present value discount (14 ) Total operating lease liabilities $ 646 |
Accrued Liabilities and Accou_2
Accrued Liabilities and Accounts Payable (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of accrued liabilities | Details relating to the accrued liabilities and accounts payable reflected on the Company’s balance sheet are as follows: September 30 2022 2021 (In thousands) Accrued bonus liabilities $ 2,207 $ 2,738 Accrued sub-advisor 336 628 Other accrued expenses 777 785 Total accrued expenses $ 3,320 $ 4,151 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Summary of Company's Activity | The Company’s activity was as follows: Fiscal Years Ended September 30, 2022 2021 (In thousands) Beginning year balance $ 608 $ 608 Decrease related to prior year tax positions (255 ) — Increase related to current year tax positions — — Settlements — — Lapse of statutes of limitations — — Ending year balance $ 353 $ 608 |
Provision for Income Taxes | The Company’s income tax expense was as follows: Fiscal Years Ended September 30, 2022 2021 (In thousands) Current Federal $ 855 $ 1,545 State (149 ) 513 Total Current 706 2,058 Deferred Federal 888 752 State 162 169 Total Deferred 1,050 921 Total $ 1,756 $ 2,979 |
Principal Reasons for Differences from Federal Statutory Rate | The principal reasons for the differences from the federal statutory income tax rate and the Company’s effective tax rate were as follows: Fiscal Years Ended September 30, 2022 2021 Federal statutory income tax rate 21.0% 21.0% State income taxes, net of federal benefit 3.9 4.3 Permanent and other differences 0.4 0.2 Difference due to executive compensation 1.0 1.1 Tax return to provision adjustments (1.3) (0.1) Uncertain tax position allowance (3.0) 0.4 Stock-based compensation 0.1 1.6 Effective income tax rate 22.1% 28.5% |
Tax Effects of Temporary Differences of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities were as follows: Fiscal Years Ended September 30, 2022 2021 (In thousands) Deferred tax assets Accrued compensation $ 40 $ 60 Stock compensation 20 2 State taxes 175 266 Capital loss carryforward 7 7 ROU asset/lease liability (1 ) (1 ) Gross deferred tax assets 241 334 Disallowed capital loss (7 ) (7 ) Net deferred tax assets 234 327 Deferred tax liabilities Property and equipment (35 ) (33 ) Management contracts (13,687 ) (12,731 ) Total deferred tax liabilities (13,722 ) (12,764 ) Net deferred tax liabilities $ (13,488 ) $ (12,437 ) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Diluted Earnings 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: September 30, 2022 2021 Weighted average common stock outstanding, basic 7,483,342 7,367,948 Dilutive impact of RSUs 74,666 41,164 Weighted average common stock outstanding, diluted 7,558,008 7,409,112 |
Organization and Description _4
Organization and Description of Business and Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||||||
Sep. 30, 2017 | Sep. 30, 2022 USD ($) Funds shares | Sep. 30, 2021 USD ($) shares | Sep. 30, 2020 USD ($) shares | Sep. 30, 2017 shares | Aug. 31, 2022 shares | Aug. 31, 2010 shares | |
Number of Hennessy funds to which company provides investment advisory services | Funds | 16 | ||||||
Number of mutual funds | Funds | 30 | ||||||
Management contracts impairment amount | $ | $ 0 | $ 0 | |||||
Shares available for issuance | 50% | ||||||
Share based compensation percentage criteria description | more than 50% of the outstanding shares | ||||||
Shares grant period | 10 years | ||||||
Maximum aggregate fair market value of shares | $ | $ 100,000 | ||||||
Maximum common stock issuable under plan | 22,500,000 | 22,500,000 | |||||
Maximum Vesting Period | 4 years | ||||||
Number of options available for grant | 3,785,871 | ||||||
Minimum [Member] | |||||||
Percentage of exercise price of fair value | 110% | ||||||
Maximum [Member] | |||||||
Shares grant period | 10 years | ||||||
Maximum Vesting Period | 5 years | ||||||
Unrealized gains | $ | $ 1,000,000 | $ 1,000,000 | |||||
Buyback Program [Member] | |||||||
Repurchase of common stock shares | 0 | ||||||
Number of Shares Authorized to be repurchased | 2,000,000 | 1,500,000 | |||||
Number of shares remains available for repurchase under the program | 1,096,368 | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Rate of restricted stock units vest under plan | 25% | ||||||
Incentive Stock Option Plan [Member] | Minimum [Member] | |||||||
Percentage of shareholder ownership to meet incentive stock option | 10% | ||||||
Stock Appreciation Right [Member] | Maximum [Member] | |||||||
Aggregate number of shares | 75,000 | ||||||
Dividend Reinvestment And Stock Purchase Plan [Member] | |||||||
Maximum common stock issuable under plan | 1,470,000 | ||||||
Stock issued during period shares | 7,612 | 12,666 | |||||
Shares available for issuance under plan | 1,452,845 |
Organization and Description _5
Organization and Description of Business and Significant Accounting Policies - Sechudule Of Number Of State Tax Jurisdictions That Remain Open To Examination (Details) - State and Local Jurisdiction [Member] | Sep. 30, 2022 Day |
2022 | |
Disclosure Of Number Of State Tax Jurisdictions That Remain Open To Examination [Line Items] | |
Number of state tax jurisdictions that remain open to examination | 22 |
2021 | |
Disclosure Of Number Of State Tax Jurisdictions That Remain Open To Examination [Line Items] | |
Number of state tax jurisdictions that remain open to examination | 22 |
2020 | |
Disclosure Of Number Of State Tax Jurisdictions That Remain Open To Examination [Line Items] | |
Number of state tax jurisdictions that remain open to examination | 22 |
2019 | |
Disclosure Of Number Of State Tax Jurisdictions That Remain Open To Examination [Line Items] | |
Number of state tax jurisdictions that remain open to examination | 19 |
2018 | |
Disclosure Of Number Of State Tax Jurisdictions That Remain Open To Examination [Line Items] | |
Number of state tax jurisdictions that remain open to examination | 17 |
Organization and Description _6
Organization and Description of Business and Significant Accounting Policies - Schedule of Non-Vested Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested Beginning Balance, Number of Restricted Share Units | 323,810 | 322,181 |
Granted, Number of Restricted Share Units | 132,875 | 134,625 |
Vested, Number of Restricted Share Units | (133,207) | (132,996) |
Forfeited, Number of Restricted Share Units | (7,917) | 0 |
Non-vested Ending Balance, Number of Restricted Share Units | 315,561 | 323,810 |
Non-vested Beginning Balance, Weighted Avg. Fair Value Per Share at Each Date | $ 8.87 | $ 9.76 |
Granted, Weighted Avg. Fair Value Per Share at Each Date | 7.72 | 8.64 |
Vested, Weighted Fair Value Per Share at Each Date | (9.42) | (10.81) |
Forfeited, Weighted Fair Value Per Share at Each Date | (8.76) | 0 |
Non-vested Ending Balance, Weighted Avg. Fair Value Per Share at Each Date | $ 8.15 | $ 8.87 |
Organization and Description _7
Organization and Description of Business and Significant Accounting Policies - Schedule of Non-Vested Restricted Stock Units Compensation (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total expected compensation expense related to RSUs | $ 1,252 | $ 1,438 |
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 | (15,570) | |
Unrecognized compensation expense related to RSUS | $ 2,573 | |
Weighted average remaining period to expense for RSUs | 3 years |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Categorized on Basis of Various Levels (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market fund deposits | $ 54,225 | $ 11,554 |
Mutual fund investments | 9 | 10 |
Cash and cash equivalents | 54,225 | 11,554 |
Investments in marketable securities | 9 | 10 |
Total | 54,234 | 11,564 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market fund deposits | 54,225 | 11,554 |
Mutual fund investments | 9 | 10 |
Cash and cash equivalents | 54,225 | 11,554 |
Investments in marketable securities | 9 | 10 |
Total | $ 54,234 | $ 11,564 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
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 | $ 37,300,000 |
Investments - Trading Investmen
Investments - Trading Investments Details (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Investments [Line Items] | ||
Cost | $ 4 | $ 4 |
Gross Unrealized Gains | 24 | 24 |
Gross Unrealized Losses | (19) | (18) |
Total | 9 | 10 |
Mutual Fund Investments [Member] | ||
Investments [Line Items] | ||
Cost | 4 | 4 |
Gross Unrealized Gains | 24 | 24 |
Gross Unrealized Losses | (19) | (18) |
Total | $ 9 | $ 10 |
Property and Equipment, Net - P
Property and Equipment, Net - Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,377 | $ 2,161 |
Accumulated depreciation | (2,057) | (1,850) |
Property and equipment, net | 320 | 311 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 703 | 599 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 154 | 154 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 396 | 391 |
IT Infrastructure [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 85 | 84 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,039 | $ 933 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 207 | $ 232 |
Management Contracts - Addition
Management Contracts - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Contractors [Abstract] | ||
Management contracts | $ 80.9 | $ 0.3 |
Investment Advisory Agreements
Investment Advisory Agreements - Additional Information (Detail) | 12 Months Ended |
Sep. 30, 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 |
Leases - Schedule Of Operating
Leases - Schedule Of Operating Lease Maturities (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Operating lease right-of-use assets | $ 651 | $ 1,010 |
Current operating lease liability | 367 | 359 |
Long-term operating lease liability | $ 279 | $ 646 |
Weighted average remaining lease term | 1 year 9 months 18 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 | Sep. 30, 2022 USD ($) |
Fiscal year 2023 undiscounted cash flows | $ 374 |
Fiscal year 2024 | 286 |
Total undiscounted cash flows | 660 |
Present value discount | (14) |
Total operating lease liabilities | $ 646 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Right of use assets payments | $ 360 | $ 430 |
Operating lease right-of-use assets | 651 | 1,010 |
Novato California [Member] | ||
Operating lease right-of-use assets | $ 1,100 | |
Additional operating lease term | 3 years | |
Operating lease expiry date | Jul. 31, 2024 | |
General and Administrative Expense [Member] | ||
Operating lease rent payments | $ 490 | $ 510 |
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 | Sep. 30, 2022 | Sep. 30, 2021 |
Accrued Liabilities, Current [Abstract] | ||
Accrued bonus liabilities | $ 2,207 | $ 2,738 |
Accrued sub-advisor fees | 336 | 628 |
Other accrued expenses | 777 | 785 |
Total accrued expenses | $ 3,320 | $ 4,151 |
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 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies Description | Other than the operating leases discussed in Note 7 in this Item 8, “Financial Statements and Supplementary Data,” the Company has no commitments and no significant contingencies with original terms in excess of one year. |
Retirement Plan - Additional In
Retirement Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plan employer discretionary contribution | $ 0.2 | $ 0.2 |
Defined contribution plan description | Employees are eligible to participate if they are over 21 years of age and have completed a minimum of one month of service with at least 80 hours worked in that month. | |
Defined contribution plan employee eligibility age | 21 years | |
Defined contribution plan minimum eligible service months | 1 month | |
Defined contribution plan minimum eligible service hours | 80 hours | |
Defined contribution plan name | 401(k) retirement plan | |
Discretionary Contributions [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plan description | To be eligible for the discretionary profit-sharing contribution, an employee must be eligible to participate in the 401(k) retirement plan and must complete at least 501 hours of service during the calendar year or be employed as of the last day of the calendar year. | |
Defined contribution plan minimum eligible service hours in each month | 501 hours |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
Gross liability for unrecognized tax benefits | $ 353 | $ 608 | $ 608 |
Unrecognized tax benefits that would impact effective tax rate | 300 | 500 | |
Net liability for accrued interest and penalties | 300 | 300 | |
Interest and penalty expenses on unrecognised tax benefit | $ 20 | $ 30 |
Income Taxes - Summary of Compa
Income Taxes - Summary of Company's Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Beginning year balance | $ 608 | $ 608 |
Decrease related to prior year tax positions | (255) | |
Increase related to current year tax positions | 0 | 0 |
Settlements | 0 | |
Lapse of statutes of limitations | 0 | |
Ending year balance | $ 353 | $ 608 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Current | ||
Federal | $ 855 | $ 1,545 |
State | (149) | 513 |
Total | 706 | 2,058 |
Deferred | ||
Federal | 888 | 752 |
State | 162 | 169 |
Deferred income tax expense (benefit), total | 1,050 | 921 |
Total | $ 1,756 | $ 2,979 |
Income Taxes - Principal Reason
Income Taxes - Principal Reasons for Differences from Federal Statutory Rate (Detail) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
Federal statutory income tax rate | 21% | 21% |
State income taxes, net of federal benefit | 3.90% | 4.30% |
Permanent and other differences | 0.40% | 0.20% |
Difference due to executive compensation | 1% | 1.10% |
Tax return to provision adjustments | (1.30%) | (0.10%) |
Uncertain tax position allowance | (3.00%) | 0.40% |
Stock-based compensation | 0.10% | 1.60% |
Effective income tax rate | 22.10% | 28.50% |
Income Taxes - Tax Effects of T
Income Taxes - Tax Effects of Temporary Differences of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Deferred tax assets | ||
Accrued compensation | $ 40 | $ 60 |
Stock Compensation | 20 | 2 |
State taxes | 175 | 266 |
Capital loss carryforward | 7 | 7 |
ROU asset/lease liability | (1) | (1) |
Gross deferred tax assets | 241 | 334 |
Disallowed capital loss | (7) | (7) |
Net deferred tax assets | 234 | 327 |
Deferred tax liabilities | ||
Property and equipment | (35) | (33) |
Management contracts | (13,687) | (12,731) |
Total deferred tax liabilities | (13,722) | (12,764) |
Net deferred tax liabilities | $ (13,488) | $ (12,437) |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) - shares | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Restricted Stock Units (RSUs) [Member] | ||
Weighted Average Amounts Used In Calculating Earnings Per Share [Line Items] | ||
Stock options excluded from diluted earnings per share | 282 | 65,098 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Diluted Earnings Per Share (Detail) - shares | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||
Weighted average common stock outstanding, basic | 7,483,342 | 7,367,948 |
Dilutive impact of RSUs | 74,666 | 41,164 |
Weighted average common stock outstanding, diluted | 7,558,008 | 7,409,112 |
Concentration of Credit Risk -
Concentration of Credit Risk - Additional Information (Detail) $ in Millions | Sep. 30, 2022 USD ($) |
Concentration Risk [Line Items] | |
Deposit amount exceeding the FDIC insurance limit | $ 4 |
First American Retail Prime Obligation Money Market Fund [Member] | |
Concentration Risk [Line Items] | |
Uninsured amount of cash and cash equivalents | $ 54.1 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - Dividend Declared [Member] | 1 Months Ended |
Oct. 27, 2022 $ / shares | |
Subsequent Event [Line Items] | |
Dividend to be paid | $ 0.1375 |
Dividend declared date | Oct. 27, 2022 |
Dividend record date | Nov. 15, 2022 |
Dividend payable date | Nov. 30, 2022 |