Item 4.02 Non-Reliance on Previously Issued Financial Statement or Related Audit
Report or Completed Interim Review.
In connection with the preparation of its financial statements as of September
30, 2021, the management of Hamilton Lane Alliance Holdings I, Inc. (the
"Company") has re-evaluated the Company's application of ASC 480-10-S99-3A to
its accounting classification of the redeemable shares of Class A common stock,
par value $0.0001 per share (the "Public Shares"), issued as part of the units
sold in the Company's initial public offering (the "IPO") on January 15, 2021.
Historically, a portion of the Public Shares was classified as permanent equity
to maintain net tangible assets greater than $5,000,000 on the basis that the
Company will consummate its initial business combination only if the Company has
net tangible assets of at least $5,000,001. The Company's management has
determined that the Public Shares include certain provisions that require
classification of the Public Shares as temporary equity regardless of the
minimum net tangible assets required to complete the Company's initial business
combination. In connection with the change in presentation for the Class A
common stock subject to possible redemption, the Company revised its earnings
per share calculation to allocate income and losses shared pro rata between the
two classes of shares. This presentation differs from the previously presented
method of earnings per share, which was similar to the two-class method.
The Company corrected its accounting and classification of the redeemable shares
of Class A common stock in the unaudited quarterly financial statements for the
quarterly period ended September 30, 2021 included in the Company's quarterly
report on Form 10-Q filed with the SEC on October 29, 2021 and presented the
reclassification of prior period financial statement amounts as a revision that
did not require the restatement of previously issued financial statements. On
November 30, 2021, the Company's management and the Audit Committee of the
Company's board of directors (the "Audit Committee") concluded that its
previously issued audited balance sheet as of January 15, 2021 as previously
reported as revised in the Company's Quarterly Report on Form 10-Q filed with
the SEC on May 21, 2021 (the "Q1 Form 10-Q"); the Company's unaudited quarterly
financial statements as of and for the three months ended March 31, 2021
included in the Q1 Form 10-Q, the Company's unaudited quarterly financial
statements as of and for the six months ended June 30, 2021 included in the
Company's quarterly report on Form 10-Q filed with the SEC on July 26, 2021 and
Note 2 to the unaudited interim financial statements and Item 4 of Part 1
included in the Company's Quarterly Report on Form 10-Q for the quarterly period
ended September 30, 2021, filed with the SEC on October 29, 2021 (collectively,
the "Non-Reliance Affected Financial Statements"), should be restated to report
all Public Shares as temporary equity and should no longer be relied upon.
As such, the Company will restate its financial statements for the periods
affected by the Non-Reliance Affected Financial Statements in an amended
Quarterly Report on Form 10-Q/A for the quarterly period ended September 30,
2021 (the "Q3 Form 10-Q/A"), as described therein.
The Company's management has concluded that in light of the classification error
described above, a material weakness exists in the Company's internal control
over financial reporting and that the Company's disclosure controls and
procedures were not effective as of September 30, 2021, for the periods covered
by the Non-Reliance Affected Financial Statements. The Company's remediation
plan with respect to such material weakness will be described in more detail in
the Q3 Form 10-Q/A.
The above changes will not have any impact on the Company's cash position and
cash held in the trust account established in connection with the IPO.
The Company's management and the Audit Committee have discussed the matters
disclosed in this Current Report on Form 8-K pursuant to this Item 4.02(a) with
WithumSmith+Brown, PC, the Company's independent registered public accounting
firm.
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