PART I: Financial Information [Item 1: Unaudited Condensed Financial Statements](index=4&type=section&id=Item%201%20Unaudited%20Condensed%20Financial%20Statements) This section presents unaudited condensed financial statements for the periods ended March 31, 2023, detailing the company's financial position, performance, and cash flows [Balance Sheets](index=4&type=section&id=Balance%20Sheets) As of March 31, 2023, total assets were $143.0 million, a slight decrease from $143.7 million at September 30, 2022 Condensed Balance Sheet Data (in thousands) | Account | March 31, 2023 | September 30, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$142,974** | **$143,652** | | Cash and cash equivalents | $57,869 | $58,487 | | Management contracts | $81,071 | $80,868 | | **Total Liabilities** | **$55,885** | **$57,354** | | Notes payable, net | $39,014 | $38,870 | | **Total Stockholders' Equity** | **$87,089** | **$86,298** | [Statements of Income](index=5&type=section&id=Statements%20of%20Income) For the six months ended March 31, 2023, total revenue decreased 25.9% year-over-year to $12.1 million, while net income fell 34.2% to $2.3 million Income Statement Highlights (in thousands, except per share data) | Metric | Six Months Ended Mar 31, 2023 | Six Months Ended Mar 31, 2022 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $12,061 | $16,279 | -25.9% | | Net Operating Income | $3,197 | $5,460 | -41.4% | | Net Income | $2,314 | $3,515 | -34.2% | | Diluted EPS | $0.30 | $0.46 | -34.8% | | Cash dividends declared per share | $0.28 | $0.28 | 0.0% | [Statements of Changes in Stockholders' Equity](index=6&type=section&id=Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity increased to $87.1 million at March 31, 2023, driven by net income that was partially offset by dividend payments - For the six months ended March 31, 2023, stockholders' equity increased by **$0.8 million**, reflecting net income of **$2.3 million** less dividends paid of **$2.1 million**, along with contributions from stock-based compensation and dividend reinvestment plans[17](index=17&type=chunk) [Statements of Cash Flows](index=7&type=section&id=Statements%20of%20Cash%20Flows) Net cash from operating activities decreased to $2.0 million for the six months ended March 31, 2023, resulting in a net decrease in cash of $0.6 million Summary of Cash Flows (in thousands) | Activity | Six Months Ended Mar 31, 2023 | Six Months Ended Mar 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,955 | $3,543 | | Net cash used in investing activities | ($526) | ($100) | | Net cash (used in) provided by financing activities | ($2,047) | $36,556 | | **Net (decrease) increase in cash** | **($618)** | **$39,999** | [Notes to Unaudited Condensed Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Financial%20Statements) The notes detail accounting policies and provide further information on key acquisitions, outstanding debt, and subsequent events - The company's main business is providing investment advisory services to 16 open-end mutual funds and one ETF branded as the Hennessy Funds[25](index=25&type=chunk) - On December 22, 2022, the company acquired assets related to the management of the Stance Equity ESG Large Cap Core ETF, which added approximately **$43 million** to assets under management at closing[34](index=34&type=chunk) - The company has **$40.25 million** in aggregate principal of 4.875% unsecured notes outstanding, which mature on December 31, 2026[51](index=51&type=chunk) - Subsequent to the quarter end, on April 26, 2023, the company signed a definitive agreement to acquire the management of two CCM Equity Funds, which will be reorganized into the Hennessy Stance ESG ETF[69](index=69&type=chunk) [Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 25.9% revenue decrease driven by a 25.2% decline in assets under management (AUM), which impacted overall net income [Overview and Business Strategy](index=21&type=section&id=Overview%20and%20Business%20Strategy) The company's strategy focuses on acquisitions and organic growth, with revenues tied to AUM in a challenging economic environment - The company's business strategy centers on (a) identification, completion, and integration of future acquisitions and (b) organic growth through asset retention and generation of inflows[77](index=77&type=chunk) - Revenues are derived from investment advisory and shareholder service fees, which are calculated as a percentage of the average daily net assets of each Hennessy Fund and fluctuate with market performance and fund flows[79](index=79&type=chunk) - Despite a challenging economic backdrop, **15 out of 17 Hennessy Funds** generated positive returns for the six months ended March 31, 2023[84](index=84&type=chunk) [Assets Under Management (AUM)](index=23&type=section&id=Assets%20Under%20Management) Total AUM decreased by 25.2% to $2.8 billion as of March 31, 2023, from a year prior due to market depreciation and net outflows Quarterly Changes in Assets Under Management (in thousands) | Quarter Ended | Beginning AUM | Net Flows & Acquisitions | Market Appreciation (Depreciation) | Ending AUM | | :--- | :--- | :--- | :--- | :--- | | Mar 31, 2023 | $3,009,458 | ($190,441) | $24,946 | $2,843,963 | | Dec 31, 2022 | $2,895,717 | ($140,895) | $254,636 | $3,009,458 | | Sep 30, 2022 | $3,155,566 | ($94,074) | ($165,775) | $2,895,717 | | Jun 30, 2022 | $3,804,028 | ($167,894) | ($480,568) | $3,155,566 | | Mar 31, 2022 | $4,072,849 | ($136,730) | ($132,091) | $3,804,028 | - Total AUM was **$2.8 billion** as of March 31, 2023, a decrease of **$1.0 billion**, or **25.2%**, compared to March 31, 2022, due to net outflows and market depreciation[88](index=88&type=chunk)[97](index=97&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) A 25.9% revenue decrease outpaced an 18.1% reduction in operating expenses, leading to a significant drop in net operating income Revenue Comparison (in thousands) | Revenue Source | Six Months Ended Mar 31, 2023 | Six Months Ended Mar 31, 2022 | Change | | :--- | :--- | :--- | :--- | | Investment advisory fees | $11,089 | $15,124 | -26.7% | | Shareholder service fees | $972 | $1,155 | -15.8% | | **Total Revenue** | **$12,061** | **$16,279** | **-25.9%** | Operating Expense Comparison (in thousands) | Expense Category | Six Months Ended Mar 31, 2023 | Six Months Ended Mar 31, 2022 | Change | | :--- | :--- | :--- | :--- | | Compensation and benefits | $3,788 | $4,373 | -13.4% | | Sub-advisory fees | $1,899 | $3,447 | -44.9% | | General and administrative | $2,845 | $2,563 | +11.0% | | **Total Operating Expenses** | **$8,864** | **$10,819** | **-18.1%** | - The decrease in sub-advisory fees was due to lower average AUM in sub-advised funds and the termination of sub-advisory payments for two funds after January 31, 2022[114](index=114&type=chunk) - Net income for the six months ended March 31, 2023, decreased by **34.2% to $2.3 million**, primarily due to decreased assets under management which resulted in lower revenues[122](index=122&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a solid liquidity position with $57.9 million in cash, which is deemed sufficient to meet near-term obligations - As of March 31, 2023, the company had cash and cash equivalents of **$57.9 million**[127](index=127&type=chunk) - The company's principal liability is **$40.25 million** in 4.875% notes, which mature on December 31, 2026[126](index=126&type=chunk) Cash Flow Summary (in thousands) | Activity | Six Months Ended Mar 31, 2023 | Six Months Ended Mar 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,955 | $3,543 | | Net cash used in investing activities | ($526) | ($100) | | Net cash (used in) provided by financing activities | ($2,047) | $36,556 | [Item 4: Controls and Procedures](index=31&type=section&id=Item%204%20Controls%20and%20Procedures) Management evaluated and concluded that the company's disclosure controls and procedures were effective as of March 31, 2023 - Based on an evaluation, management concluded that the Company's disclosure controls and procedures are **effective** as of the end of the period covered by this report[132](index=132&type=chunk) - **No changes** in internal control over financial reporting occurred during the fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal controls[133](index=133&type=chunk) PART II: Other Information [Item 6: Exhibits](index=32&type=section&id=Item%206%20Exhibits) This section lists all exhibits filed with the report, including officer certifications and financial statements formatted in XBRL - The exhibits listed include Rule 13a-14a certifications from the Principal Executive Officer and Principal Financial Officer, statements pursuant to 18 U.S.C. § 1350, and financial statements formatted in XBRL[137](index=137&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Table of Contents WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended December 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-36423 HENNESSY ADVISORS, INC. (Exact name of registrant as specified in its charter) California 68-0176227 (State or othe ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from _____ to _____ (415) 899-1555 Commission File Number 001-36423 HENNESSY ADVISORS, INC. (Exact name of registrant as specified in its charter) California 68-0176227 (State or ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Exact name of registrant as specified in its charter) California 68-0176227 (State or other jurisdiction of incorporation or organization) 7250 Redwood Boulevard, Suite 200 Novato, California 94945 (Address of principal executive office) (Zip code) (I.R.S. Employer Identification No.) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June ...