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Clover Lost $136.4 Million in 2020, Not $91.6 as Originally Reported
Thirty days after posting its 2020 results, the health insurer blamed an accounting error for boosting its annual loss 48.9%.
May 19, 2021
Two months after going public via a SPAC in January 2021, Clover (CLOV), an online platform offering Medicare Advantage insurance, distributed a news release touting the company’s fourth quarter 2020 and full year results. The release shows a $91.6 million dollar loss for the full year 2020.
Thirty days later, Clover filed its 2020 10-K and disclosed it had identified a material weakness in its internal control over financial reporting related to the valuation of its derivative liability, plus:
“The derivative liability in connection with the convertible securities should have been valued at $44.8 million but was instead valued at $0. For the quarter and fiscal year ended December 31, 2020, the adjustment decreased the gain on derivatives by $44.8 million, with a corresponding increase to net loss for the same periods, in each case as compared to the amounts reflected in the Company’s press release announcing our financial results for the three months and year ended December 31, 2020 that we furnished in a Current Report on Form 8-K on March 1, 2020.”
Related: CNC, UNH, ANTM
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