HKHC — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-05-15

• HKHC’s revenues from ETF products increased $0.8 million, or 34.0%, this quarter primarily as a result of higher average AUM at our Inflation Beneficiaries ETF.

• In addition, the Company earned incentive fees of $18.1 million from certain private funds due to expiration of certain restrictions associated with their investments in Miami International Holdings (“MIAX”). While these incentive fees, and other management fees, earned from consolidated private fun…

• The Company maintains a portfolio for investment purposes and has also invested substantial capital in its private funds alongside client investors. For the quarter ended March 31, 2026, there was an increase of $36.2 million in the fair value of the Company’s investment portfolio primarily due to t…

• The Company’s consolidated investment products experienced favorable performance thus far in 2026. Specifically, the Polestar Funds and Horizon Multi-Strategy Fund were the largest contributors for the three months ended March 31, 2026, however they were partially offset by net losses at Horizon Kin…

• Results of Operations for the three months ended March 31, 2026

Text removed vs the prior filing · source: 10-Q · 2025-11-13

• HKHC’s quarterly and year-to-date revenues were favorable comparisons to the prior year as a result of increasing AUM at our mutual funds, ETFs, separately managed accounts and proprietary funds due to their favorable performance.

• The Company completed a disposal transaction of our consumer product group brands. While this disposal will reduce product revenues, the transaction proceeds are expected to provide the Company with royalties through 2035.

• The Company has launched investment products during 2025, including private funds as well as an actively managed ETF focused on companies domiciled in Japan, with locally driven revenues that are specifically operated by individuals who have significant ownership in the company (ticker: JAPN).

• HKHC maintains a portfolio for investment purposes and has also invested substantial capital in its proprietary funds alongside client investors. For the three months ended September 30, 2025 there was a decrease of $7.0 million in the fair value of this portfolio primarily due to the decrease in th…

• The Company’s consolidated investment products experienced mixed performance during the third quarter of 2025. Specifically, the Horizon Kinetics Equity Opportunities Fund and South Lasalle Partnership were the largest contributors collectively representing approximately $178 million of net income f…

Text added vs the prior filing · source: 10-Q · 2026-05-15

• There were no changes in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended March 31, 2026 that materially affected, or are reasonably likely to materially affect, the Company’s internal control over f…

Text removed vs the prior filing · source: 10-Q · 2025-11-13

• Notwithstanding the material weakness, which still existed as of September 30, 2025, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that the condensed consolidated financial statements included in this Quarterly Report present fairly, in all material respects, our f…

• A material weakness is a deficiency or a combination of deficiencies in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the registrant’s financial statements will not be prevented or detected on a timely basis. During 2024, manage…

• During 2025, the Company hired additional trained professionals to our finance department, who have technical accounting expertise perform additional account control procedures. The process of remediating these material weaknesses will continue until these staff and other internal control procedures…

• During the third quarter of 2025, management completed the implementation of additional supervisory review procedures of account reconciliations and valuations of certain significant accounts, including certain intercompany and related party accounts and related elimination entries, and have address…

• We have performed testing to evaluate the operating effectiveness of these remediation measures. Based on the results of our testing, we have concluded that the aforementioned material weaknesses related to the ineffective design or implementation of certain account reconciliations over significant …