Hennessy Advisors Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Hennessy Advisors Inc. filed its Q1 2024 10-Q, reporting $22.5 million in assets and $7.67 million in debt as of December 31, 2023.</b>

AI Summary

HENNESSY ADVISORS INC (HNNAZ) filed a Quarterly Report (10-Q) with the SEC on February 8, 2024. Hennessy Advisors Inc. reported total assets of $22,500,000 for the period ending December 31, 2023. The company's total debt was $7,673,869 as of December 31, 2023. Revenue from Investment Advice was $2,356 for Q1 2024, compared to $2,287 for Q1 2023. Revenue from Shareholder Services was $7,671,099 for Q1 2024, compared to $7,673,869 for Q1 2023. The filing covers the period from October 1, 2023, to December 31, 2023.

Why It Matters

For investors and stakeholders tracking HENNESSY ADVISORS INC, this filing contains several important signals. This 10-Q filing provides a quarterly update on Hennessy Advisors Inc.'s financial performance and position, crucial for investors to assess recent operational results and balance sheet health. The specific figures for revenue, assets, and debt offer concrete data points for evaluating the company's growth trajectory and financial stability in the current market environment.

Risk Assessment

Risk Level: low — HENNESSY ADVISORS INC shows low risk based on this filing. The filing is a routine 10-Q, and the provided data does not indicate any significant immediate risks or negative trends.

Analyst Insight

Monitor revenue trends in Investment Advice and Shareholder Services for signs of growth or decline in the coming quarters.

Revenue Breakdown

Key Numbers

• 22,500,000 — Total Assets (As of December 31, 2023)
• 7,673,869 — Total Debt (As of December 31, 2023)
• 2,356 — Revenue - Investment Advice (Q1 2024)
• 2,287 — Revenue - Investment Advice (Q1 2023)
• 7,671,099 — Revenue - Shareholder Services (Q1 2024)
• 7,673,869 — Revenue - Shareholder Services (Q1 2023)

Key Players & Entities

• HENNESSY ADVISORS INC (company) — Filer
• 20231231 (date) — Conformed Period of Report
• 20240208 (date) — Filed as of Date
• 0001145255 (company) — Central Index Key
• 6282 (industry) — Standard Industrial Classification
• 415-899-1555 (phone) — Business Phone
• 2023-10-01 (date) — Quarterly period start date
• 2023-12-31 (date) — Quarterly period end date

Forward-Looking Statements

• Hennessy Advisors will maintain stable, modest growth in net income over the next fiscal year. (HENNESSY ADVISORS INC) — medium confidence, target: 2024-09-30

FAQ

Risk Factors

• Market Fluctuations [medium — financial]: The company's financial results are subject to market fluctuations that can impact investment performance and asset values.
• Dependence on Key Personnel [medium — operational]: The success of the company may depend on the continued service of key personnel, and their departure could adversely affect operations.

Filing Documents

• hnna20231231_10q.htm (10-Q) — 633KB
• ex_614043.htm (EX-10.2) — 24KB
• ex_614044.htm (EX-10.3) — 22KB
• ex_615742.htm (EX-10.4) — 13KB
• ex_615743.htm (EX-10.5) — 13KB
• ex_606544.htm (EX-31.1) — 12KB
• ex_606545.htm (EX-31.2) — 12KB
• ex_606546.htm (EX-32.1) — 3KB
• ex_606547.htm (EX-32.2) — 3KB
• 0001437749-24-003522.txt (&nbsp;) — 3488KB
• hnna-20231231.xsd (EX-101.SCH) — 36KB
• hnna-20231231_cal.xml (EX-101.CAL) — 31KB
• hnna-20231231_def.xml (EX-101.DEF) — 250KB
• hnna-20231231_lab.xml (EX-101.LAB) — 212KB
• hnna-20231231_pre.xml (EX-101.PRE) — 271KB
• hnna20231231_10q_htm.xml (XML) — 367KB

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 15 Item 4

Controls and Procedures

Controls and Procedures 24 PART II Other Information Item 1A

Risk Factors

Risk Factors 24 Item 5 Other Information 24 Item 6 Exhibits 25

Signatures

Signatures 26 Table of Contents

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

: Unaudited Condensed Financial Statements

Item 1: Unaudited Condensed Financial Statements Balance Sheets (In thousands, except share and per share amounts) (Unaudited) December 31, September 30, 2023 2023 Assets Current assets Cash and cash equivalents $ 59,605 $ 60,476 Investments in marketable securities, at fair value 11 10 Investment fee income receivable 2,155 2,046 Interest income receivable 264 253 Prepaid expenses 603 669 Other accounts receivable 251 247 Total current assets 62,889 63,701 Property and equipment, net of accumulated depreciation of $ 2,356 and $ 2,287 , respectively 282 305 Operating lease right-of-use asset 206 295 Management contracts 81,466 81,262 Other assets 163 156 Total assets $ 145,006 $ 145,719 Liabilities and Stockholders' Equity Current liabilities Accrued liabilities and accounts payable $ 1,616 $ 3,165 Operating lease liability 186 279 Income taxes payable 978 748 Total current liabilities 2,780 4,192 Notes payable, net of issuance costs 39,240 39,164 Net deferred income tax liability 14,825 14,611 Total liabilities 56,845 57,967 Commitments and contingencies (Note 9) Stockholders' equity Common stock, no par value, 22,500,000 shares authorized; 7,673,869 shares issued and outstanding as of December 31, 2023, and 7,671,099 as of September 30, 2023 22,064 21,800 Retained earnings 66,097 65,952 Total stockholders' equity 88,161 87,752 Total liabilities and stockholders' equity $ 145,006 $ 145,719 See Notes to Unaudited Condensed Financial Statements 1 Table of Contents (In thousands, except share and per share amounts) (Unaudited) Three Months Ended December 31, 2023 2022 Revenue Investment advisory fees $ 5,665 $ 5,654 Shareholder service fees 479 491 Total revenue 6,144 6,145 Operating expenses Compensation and benefits 1,866 1,858 General and administrative 1,724 1,569 Fund distribution and other 149 95 Sub-a

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View this 10-Q filing on SEC EDGAR