HealthWarehouse.com Reports 2Q and Year-to-Date 2017 Results

Online pharmacy net sales grow $1.5 million or 62% 2Q 2017 versus 2Q 2016

CINCINNATI – HealthWarehouse.com, Inc. (OTC: HEWA) announced today that its net sales for the three months ended June 30, 2017 increased 62% to $3.9 million compared to $2.4 million in 2016. For the six months ended June 30, 2017, sales increased 53% to $7.3 million compared to $4.8 million in the same period in 2016. Total orders shipped increased 35% from 122,556 orders in the first six months of 2016 to 189,764 orders in the same period in 2017.

The Company reported net income of $365,418 and $487,149 for the three and six months ended June 30, 2017 compared with net losses of $79,461 and $333,118 for the three and six months ended June 30, 2016.

HealthWarehouse.com is a Verified Internet Pharmacy Practice Sites (VIPPS) and Vet-VIPPS accredited online and mail-order pharmacy licensed and/or authorized to sell and deliver prescriptions in all 50 states. The Company attributed its 2017 sales performance to growth in core consumer prescription and over-the-counter product sales.

“Our team has a mission to provide excellent pharmacy experiences through compassion, convenience, and transparency to our community across the nation,” said Joseph Peters, the Company’s Interim President and CEO. We have grown our consumer base by providing extraordinary customer care, competitive pricing, and swift deliveries straight to our customers’ homes, all while maintaining a firm commitment to the practice of pharmacy. This year’s quarterly improvements are a reflection of our team’s dedication to this mission.”

In the three and six months ended June 30, 2017, Adjusted EBITDA was $485,486 and $718,384, as compared to Adjusted EBITDA of $28,238 for the three months ended June 30, 2016 and $78,854 of negative EBITDA for the six months ended June 30, 2016. Adjusted EBITDA is a non-GAAP financial measure and a reconciliation to the GAAP measure is provided below.

2017 Overview:

Net Sales: Core consumer prescription sales were $2,886,617 for the three months ended June 30, 2017 as compared to $1,811,860 for the same period of 2016, an increase of $1,074,758 or 59%. For the six months ended June 30, 2017, core consumer prescription sales were $5,499,384, an increase of $1,892,547 or 53% over the $3,606,837 of sales reported for the same period in 2016.

The number of prescription orders shipped for the three and six months ended June 30, 2017 was 71,219 and 136,398, representing increases of 25,095 (54%) and 46,059 (34%) as compared to the prior year periods.

Over-the-counter product net sales grew to $868,777 for the three months ended June 30, 2017, a $376,615 or 77% increase over the $492,162 of net sales in the comparable period in 2016. For the six months ended June 30, 2017, Over-the-counter product sales were $1,516,221, a $565,292 or 59% increase over the $950,929 of sales reported for the same period in 2016.

Over-the-counter product orders shipped for the three and six months ended June 30, 2017 were 32,297 and 53,232, representing increases of 15,458 (92%) and 21,100 (40%) as compared to the comparable the prior year periods.

Gross Profit: Gross profit for the three and six months ended June 30, 2017 was $2,578,701 and $4,878,469, resulting in increases of $1,033,563 (67%) and $1,877,353 (63%) over the same periods of 2016. The increases are due to sales growth and improved procurement practices.

SG&A Expenses: SG&A expenses were $2,185,870 and $4,339,314 for the three and six months ended June 30, 2017, resulting in increases of $588,800 (37%) and $1,058,528 (32%) compared to the same periods of 2016. Increases in 2017 resulted primarily from volume-related expenses such as increased staffing, freight costs and payment processing fees, in addition to higher legal costs, partially offset by lower costs resulting from improved fulfillment procedures and cost controls.

About HealthWarehouse.com

HealthWarehouse.com, Inc. (OTC: HEWA) is a trusted VIPPS accredited online pharmacy based in Florence, Kentucky. The Company is focused on the growing out of pocket prescription market, which is expected to grow to over $51 billion in 2017. With a mission to provide affordable healthcare to every American by focusing on technology that is revolutionizing prescription delivery, HealthWarehouse.com has become the largest VIPPS accredited online pharmacy in the United States. HealthWarehouse.com is licensed in all 50 states and only sells drugs that are FDA approved and legal for sale in the United States. Visit HealthWarehouse.com online at www.HealthWarehouse.com

Forward-Looking Statements

This announcement and the information incorporated by reference herein contain “forward looking statements” as defined in federal securities laws including but not limited to Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995, which statements are based on our current expectations, estimates, forecasts and projections. Statements that are not historical facts, including statements about the beliefs, expectations and future plans and strategies of the Company, are forward-looking statements. Actual results may differ materially from those expressed in forward looking statements or in management's expectations. Important factors which could cause or contribute to actual results being materially and adversely different from those described or implied by forward looking statements include, among others, risks related to competition, management of growth, access to sufficient capital to fund our business and our growth, new products, services and technologies, potential fluctuations in operating results, international expansion, outcomes of legal proceedings and claims, fulfillment center optimization, seasonality, commercial agreements, acquisitions and strategic transactions, foreign exchange rates, system interruption, cyber-attacks, access to sufficient inventory, government regulation and taxation, payments and fraud.

Use of Non-GAAP Financial Measures

HealthWarehouse.com, Inc. (the "Company") prepares its consolidated financial statements in accordance with the United States generally accepted accounting principles ("GAAP"). In addition to disclosing financial results prepared in accordance with GAAP, the Company discloses information regarding Adjusted EBITDA, which is commonly used. In addition to adjusting net loss to exclude interest, depreciation and amortization, Adjusted EBITDA also excludes stock issued for services, and certain other nonrecurring charges. Adjusted EBITDA is not a measure of performance defined in accordance with GAAP. However, Adjusted EBITDA is used internally in planning and evaluating the Company`s performance. Accordingly, management believes that disclosure of this metric offers investors, bankers and other shareholders an additional view of the Company`s operations that, when coupled with the GAAP results, provides a more complete understanding of the Company’s financial results.

Adjusted EBITDA should not be considered as an alternative to net loss or to net cash used in operating activities as a measure of operating results or of liquidity. It may not be comparable to similarly titled measures used by other companies, and it excludes financial information that some may consider important in evaluating the Company`s performance.

Contact: Joseph Peters, (800) 748-7001