Financial Analysis

( 10 ) Commitments and Contingencies In addition to the operating leases discussed in Note 7 in this Item 8, Financial Statements and Supplementary Data, the Company has contractual expense ratio limitations in place with respect to the Hennessy Midstream Fund, the Hennessy Technology Fund, and the Hennessy Sustainable ETF. Such contractual expense ratio limitations will expire February 28, 2026, unless extended. Total fees waived during fiscal years 2025 and 2024 were $0.20 million and $0.18 million, respectively. To date, the Company has only waived fees based on contractual obligations but has the ability to waive fees at its discretion. Any decision to waive fees would apply only on a going forward basis. In November 2024, the Company entered into a settlement agreement with respect to employment-related claims made by a former employee in fiscal year 2024. The Company believed the settlement provided for an efficient and effective resolution to the matter. The Company has employment practices liability insurance for such claims, and therefore paid the amount of the settlement not covered by the employment practices liability insurance. The Company has no other commitments and no significant contingencies with original terms in excess of one year. …

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( 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 effective interest rate, which reflects the amortization of issuance costs over the term of the loan, during both fiscal years 2025 and 2024 was 5.7%. Total interest expense for both fiscal years 2025 and 2024 comprises $2.0 million of contractual interest and $0.3 million related to the amortization of debt issuance costs. 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 Companys future unsecured unsubordinated indebtedness, senior to any of the Companys future indebtedness that expressly provides that it is subordinate to the 2026 Notes, effectively subordinate to all of the Companys future secured indebtedness, and structurally subordinate to all future indebtedness and other obligations of any of the Companys future subsidiaries. …

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( 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 valuations in which all significant inputs and significant value drivers are observable in active markets); and Level 3 Significant unobservable inputs (including the entitys 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 Companys assets categorized in the Level 1 to Level 3 hier …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

( 12 ) Income Taxes As of the end of each of fiscal years 2025 and 2024 , the Companys gross liability for unrecognized tax benefits related to uncertain tax positions was $0.4 million and $0.4 million, respectively. If the tax benefits of such amounts were recognized, $0.3 million and $0.3 million of such amounts, respectively, would decrease the Companys effective income tax rate. As of September 30, 2025 , and September 30, 2024 , the Companys net liability for accrued interest and penalties was $0.4 million and $0.3 million, respectively. The Company has elected to recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense. The Company recognized approximately $0.05 million in interest and penalties during each of the years ended September 30, 2025 , and September 30, 2024 . A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Fiscal Years Ended September 30, 2025 2024 (In thousands) Beginning year balance $ 353 $ 353 Changes related to prior year tax positions - - Ending year balance $ 353 $ 353 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 no …

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( 7 ) Leases The Company determines if an arrangement is an operating lease at inception. Operating leases are included in operating lease right-of-use assets and current and long-term operating lease liabilities on the Companys balance sheet. There were no long-term operating leases as of September 30, 2023. During the quarter ended March 31, 2024, the Company renewed the lease for its office in Novato, California for an additional three years. The renewed lease will expire on July 31, 2027 . The renewal created a long-term operating lease asset recorded during the quarter ended March 31, 2024. There were no other long-term operating leases as of September 30, 2025. Upon renewal of the lease for its office in Novato, California, the Company recorded a right-of-use asset of $1.1 million on its balance sheet. Right-of-use assets represent the Companys right to use an underlying asset for the lease term and operating lease liabilities represent the Companys obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the present value of lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date. The Companys lease terms may include options to extend the lease when it is reasonably certain that it will exercise any such options. For it …

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( 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 2025 and 2024 . 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.

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( 17 ) Subsequent Events As of December 3, 2025 , the filing date of this Annual Report on Form 10-K, management evaluated the existence of events occurring subsequent to the end of fiscal year 2025 , and determined the following to be a subsequent event: On October 29, 2025, the Company announced a quarterly cash dividend of $0.1375 per share paid on November 26, 2025, to shareholders of record as of November 12, 2025. The declaration and payment of dividends to holders of the Companys common stock, if any, are subject to the discretion of the Companys Board of Directors. The Companys Board of Directors will take into account such matters as general economic and business conditions, the Companys strategic plans, the Companys financial results and condition, contractual, legal, and regulatory restrictions on the payment of dividends by the Company, and such other factors as the Companys Board of Directors may consider relevant. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing