HealthWarehouse.com Reports 45.6% Sales Growth Year Over Year

    Core Prescription Sales Grow 63.3% and New Customers Grow 198.5%

    (CINCINNATI, OH, May 17, 2016) -- HealthWarehouse.com, Inc. (OTCQB:HEWA), the only VIPPS accredited online and mail-order pharmacy licensed in all 50 states, announced financial results for the quarter ended March 31, 2016 on Thursday, May 13, 2016.

    For the quarter ended March 31, 2016, net sales improved to $2,347,798 up 45.6% from the prior year ended March 31, 2015. Gross margin increased to 62% while net loss narrowed to 10.8% of sales in the quarter ended March 31, 2016 from 12.4% for the quarter ended March 31, 2015.

    For the quarter ended March 31, 2016, HEWA reported adjusted EBITDAS of ($107,091), vs. adjusted EBITDAS of ($65,406) for the quarter ended March 31, 2015 primarily due to increased staffing and advertising costs. The Company believes that adjusted EBITDAS (Earnings Before Interest, Taxes, Depreciation, Amortization and Stock-Based Compensation), a non-GAAP financial measure, is useful in evaluating its operating performance compared to that of other companies in our industry.

    "Our renewed focus to serve online consumers who pay out of pocket for their prescriptions continues to show gains financially with core online prescription and over-the-counter (OTC) revenue growth," said Mr. Lalit Dhadphale, President & CEO of HealthWarehouse.com.

    "We continue to focus on growing revenue and customers while minimizing losses. With the significant addition of new customers, we look to focus on retention to further improve our bottom line and operating cash flow," said Mr. Dan Seliga, COO & CFO of HealthWarehouse.com.

    1st Quarter 2016 Overview

    1. Net Sales: Increased by $735,121 or 45.6% compared to the 1st Quarter of 2015, due to increased consumer awareness resulting from being featured in two prominent national magazines.
    2. Gross Profit: Increased by $474,464 or 48.3% compared to the 1st Quarter of 2015 due to sales growth and margin improvement initiatives.
    3. SG&A Expenses: Increased by $576,166 or 52.0% compared to the 1st Quarter of 2015, due to increased advertising, staffing and shipping costs to support the increased order and new prescription volume.
    4. Net Loss: Increased by $52,869 or 26.3% compared to the 1st Quarter of 2015.

    About HealthWarehouse.com

    HealthWarehouse.com, Inc. (OTCQB: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 $80 billion in 2016. 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 contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to competition, management of 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, inventory, government regulation and taxation, payments and fraud. More information about factors that potentially could affect HealthWarehouse.com's financial results is included in HealthWarehouse.com's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent filings.

    Use of Non-GAAP Measures

    HealthWarehouse.com, Inc. (the "Company") prepares its consolidated financial statements in accordance with the United States generally accepted accounting principles ("U.S. GAAP"). In addition to disclosing financial results prepared in accordance with U.S. GAAP, the Company discloses information regarding adjusted EBITDAS, which differs from the term EBITDA as it is commonly used. In addition to adjusting operating loss to exclude interest, depreciation and amortization, adjusted EBITDAS also excludes stock issued for services, and certain other non-cash charges. Adjusted EBITDAS is not a measure of performance defined in accordance with U.S. GAAP. However, adjusted EBITDAS 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 EBITDAS 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. A reconciliation of U.S. GAAP net loss to adjusted EBITDAS is included in the accompanying financial schedules.

    The following provides a reconciliation of net loss to Adjusted EBITDAS

      
    March 31,
     
      
    2016
      
    2015
     
      
    (unaudited)
        
           
    Net loss 
    $
    (253,657
    )
     
    $
    (200,788
    )
    Non-GAAP adjustments:        
    Gain on settement of accounts payable
      
    -
       
    (66,179
    )
    Interest expense
      
    25,919
       
    74,752
     
    Depreciation and amortization
      
    45,509
       
    45,661
     
    Stock-based compensation
      
    75,138
       
    79,005
     
    Change in fair value of collateral securing
            
    employee advances
      
    -
       
    2,143
     
      
    $
    (107,091
    )
     
    $
    (65,406
    )

    Contact
    Mr. Lalit Dhadphale, CEO
    lalit@healthwarehouse.com
    (859) 444-7341

    Our Happy Customers

    • “I have ordered twice from Health Warehouse.com. Both orders came very quickly and without any problems. I am extremely pleased.”

      Lynn N.  Monroe, NC.

    • “I was a little reluctant to place an order but I can't be happier with the service I received. I was paying $101.80 for a 90 day supply of my generic Lipitor from my insurance providers mail order supply. I only paid $36 fo...”

      Kathryn K. 

    • “Best pharmacy I'd ever dealt with. First time online but won't be the last. This place is awesome.Great job”

      Jill C. 

    VIPPS Accredited & Certified

    HealthWarehouse.com is a VIPPS accredited pharmacy based in Florence, Kentucky. We're licensed and/or authorized to sell prescriptions in all 50 states and the District of Columbia and have become America’s Trusted Online Pharmacy since 2008. For more information about how we’re revolutionizing pharmacy, one prescription at a time, click here.

    VIPPS