HealthWarehouse.com Reports 45.6% Sales Growth Year Over Year

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

CINCINNATI–(BUSINESS WIRE)–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:

  • 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.
  • Gross Profit: Increased by $474,464 or 48.3% compared to the
    1st Quarter of 2015 due to sales growth and margin improvement
    initiatives.
  • 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.
  • 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 http://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:

  For the Year Ended
March 31,
2016   2015
(unaudited)
 
Net loss $ (253,657 ) $ (200,788 )
Non-GAAP adjustments:

Gain on settlement 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
Adjusted EBITDAS $ (107,091 ) $ (65,406 )

Contacts

HealthWarehouse.com, Inc.
Mr. Lalit Dhadphale, CEO, 859-444-7341
lalit@healthwarehouse.com