HealthWarehouse.com Reports Results for First Quarter 2023

HealthWarehouse.com, Inc. (OTCQB:HEWA) announced today that its net sales for the first quarter ended March 31, 2023, totaled $5.3 million, a 22% increase over the quarter ended March 31, 2022, resulting from strong growth in partner services revenue. The Company reported a net loss of $348,120 for the quarter.

HealthWarehouse.com, a technology company with a focus on healthcare e-commerce, sells and delivers prescription and over-the-counter medications to all 50 states as an Approved Digital Pharmacy through the National Association of Boards of Pharmacy (NABP). HealthWarehouse.com provides a platform focused on increasing access and reducing costs of healthcare products for consumers and business partners nationwide.

Joseph Peters, President and CEO, commented, “We are happy to report revenue growth in the first quarter, primarily driven by growth in our partner services business. An equal if not more important accomplishment was maintaining our direct-to-consumer revenues in a highly competitive environment. HealthWarehouse.com remains a leader in the industry because we provide essential products and world-class service to our own customers and those of our healthcare partners.”

HealthWarehouse.com continues to invest in proprietary technology to remain at the forefront of new developments and offerings in the world of healthcare, focusing on patient experience, operational efficiency, and scalability.

“We are currently making our final preparations to launch our proprietary e-commerce platform and new pharmacy technology during the second quarter. The investment in our new technology platform will expand our healthcare partner offerings, allow for new application programming interfaces to customize our platform, and provide the necessary resources to grow and support our partner services and direct-to-consumer businesses. In addition, we continue to pursue opportunities to expand our product and service offerings to our customers through third parties, such as our recently announced partnership with a telemedicine provider. Our goal is to extend our position as a technological leader in the industry, providing transparent and affordable healthcare solutions while maintaining world-class service levels,” added Peters.

2023 First Quarter Overview:

Net Sales:

Net sales for the three months ended March 31, 2023, increased to $5.3 million from $4.3 million for the three months ended March 31, 2022, an increase of $961,000, or 22.3%. Prescription sales were $4.3 million, an increase of $877,000, or 25.7% from the prior-year period. These increases were primarily due to growth in partner services revenue, offset by a reduction in sales from our direct-to-consumer (B2C) business. Over-the-counter net sales increased by 11.5% from $808,000 to $901,000, primarily due to higher marketplace and partner services sales.

Gross Profit:

The increase in sales volume led to a 10.0%, or $286,000 increase in gross profit to $3.1 million for the three months ended March 31, 2023 versus a year ago. Gross margin decreased to 59.4% from 66.0% because (i) the lower-margin partner services business (relative to the direct-to-consumer business) represented a higher percentage of total sales, and (ii) year-over-year margins in the DTC prescription business decreased, due to higher prescription brand drug sales. Those were offset in part by higher year-over-year margins in the partner services and the DTC over-the-counter business, primarily due to the write down of inventory to net realizable value in 2022.

Operating Expenses:

Selling, general and administrative expenses totaled $3.4 million for the quarter, compared with $3.0 million for first quarter last year, an increase of $418,000, or 13.8%. Increases in expense included shipping and shipping supplies, salaries and related labor costs, primarily in pharmacy and customer support, software, telephone, and stock-based compensation expenses. Those increases were offset by a reduction in advertising and marketing expenses.

Net Loss and Adjusted EBITDA: The Company reported a net loss of $348,000 for the quarter, compared with a net loss of $214,000 during the same period in 2022. Adjusted EBITDA was negative $38,000 in the first quarter of 2023, compared with $64,000 in the year-earlier quarter.

Annual Meeting of Stockholders

The 2023 Annual Meeting of Stockholders will be held telephonically at 10 a.m. EDT on Wednesday, June 14, 2023. You may participate by following the instructions in the Proxy Statement sent to all stockholders.

At the meeting, stockholders will vote on the election of directors and ratification of our auditors for 2023, and on a proposal to increase in the number of shares of common stock available for issuance under our 2014 Equity Incentive Plan, in order to continue to reward and incentivize employees and directors with awards under the plan.

HEALTHWAREHOUSE.COM, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
	For the Three Months Ended
	March 31,
	2023				2022
	In thousands
Net sales	$	5,276			$	4,315
Cost of sales		2,140				1,465
Gross profit		3,136				2,850
Selling, general and administrative expenses		3,440				3,022
Net income (loss) from operations		(304	)			(172	)
Interest expense		(44	)			(42	)
Net loss		(348	)			(214	)
Preferred stock:
Series B convertible contractual dividends		(86	)			(86	)
Net loss attributable to common stockholders	$	(434	)		$	(300	)
Per share data:
Net loss - basic and diluted	$	(0.01	)		$	(0.00	)
Series B convertible contractual dividends	$	(0.00	)		$	(0.00	)
Net loss attributable to common stockholders - basic
and diluted	$	(0.01	)		$	(0.00	)
Weighted average common shares outstanding - Basic and diluted		54,140				52,150

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 EBITDA and Adjusted EBITDA, which are commonly used. In addition to adjusting net income or net loss to exclude interest, taxes, depreciation and amortization (“EBITDA”), Adjusted EBITDA also excludes stock-based compensation, and certain nonrecurring charges. EBITDA and Adjusted EBITDA are not measures 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 lenders and other shareholders an additional view of the Company`s operations that, when coupled with GAAP results, provides a more complete understanding of the Company’s financial results.

Adjusted EBITDA should not be considered as an alternative to net income, net loss or to net cash provided by or 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.

Reconciliation of Net Loss (GAAP) to Adjusted EBITDA (Non-GAAP)
		Three Months Ended
		March 31,
		2023				2022
		In thousands
Net loss		$	(348	)		$	(214	)
Interest expense			44				42
Depreciation and amortization			43				33
EBITDA (non-GAAP)			(261	)			(139	)
Adjustments to EBITDA:
Stock-based compensation			223				203
Adjusted EBITDA		$	(38	)		$	64

About HealthWarehouse.com

HealthWarehouse.com, Inc. (OTCQB: HEWA), a technology company with a focus on healthcare e-commerce, sells and delivers prescription and over-the-counter medications to all 50 states as an Approved Digital Pharmacy through the National Association of Boards of Pharmacy (“NABP”). HealthWarehouse.com provides a platform focused on increasing access and reducing costs of healthcare products for consumers and business partners nationwide. Based in Florence, Kentucky, the Company operates America's Leading Online Pharmacy and is a pioneer in affordable healthcare. As one of the first National Association of Boards of Pharmacy Approved Digital Pharmacies, HealthWarehouse.com services the mission of providing affordable healthcare and incredible patient services to help Americans. Learn more 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 and fraud. More information about factors that potentially could affect HealthWarehouse.com's financial results is included in HealthWarehouse.com's audited Annual Reports and Quarterly Reports available at otcmarkets.com and in prior filings with the U.S. Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230511005926/en/

The HealthWarehouse.com Stock at the time of publication of the news with a raise of 0,00 % to 0,190USD on Nasdaq OTC stock exchange (11. Mai 2023, 02:10 Uhr).