Reports 6% Increase in Revenues; Named a Top Greater Cincinnati Workplace

HealthWarehouse.com, Inc. (OTC:HEWA) announced today its results of operations for the three and six months ended June 30, 2022. The Company reported a loss from operations of $293,524 for the quarter and a loss from operations of $507,512 for the six months ended June 30, 2022. Net sales for the second quarter of 2022 totaled $4,199,832, a 6% increase over the same period in 2021, resulting from strong growth in partner services revenue.

HealthWarehouse.com, a technology company with a focus on healthcare e-commerce, sells and delivers prescription 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 nationwide.

Joseph Peters, president and CEO, commented, “We are happy to report revenue growth for the quarter, which was particularly strong in our partner services business. We continue to expand our healthcare partner offerings, develop new application programming interfaces to customize our platform, and add resources to grow and support our partner services business. At the same time, we are developing better technology tools to attract and retain traditional customers.”

HealthWarehouse.com was recently recognized as a Top Workplace in the Greater Cincinnati area by the Cincinnati Enquirer. The regional daily newspaper’s survey quoted one of our employees, who stated that HealthWarehouse.com is “the only company I've ever worked at where I feel valued, adequately rewarded and motivated.”

Peters said the company was honored to be recognized as a top workplace. “We strive to attract and retain a team of employees that are dedicated to providing outstanding service to our customers.”

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

Peters added, “We are targeting a planned launch of a proprietary e-commerce platform and pharmacy technology in the fourth quarter of 2022 that will enhance our customers’ experience, and as a result, improve customer acquisition and retention in our direct-to-consumer business. We believe our new technology will facilitate and expand the services provided to our healthcare partner customers in order to support our continued growth initiatives. We are well positioned to be a technological leader in the industry, providing transparent and affordable healthcare solutions while maintaining world-class service levels.”

Overview of Results for Three and Six Months Ended June 30, 2022:

Net Sales: Total net sales for the three and six months ended June 30, 2022, were $4,199,832 and $8,514,812, respectively, and increased $244,940 (6.2%) and $741,635 (9.5%), respectively, versus the same periods in 2021.

Prescription sales were $3,474,519 and $6,910,342 for the three and six months ended June 30, 2022, respectively, an increase of $149,206 (4.5%) and $419,171 (6.5%), respectively, compared with the same periods in 2021. The increase in prescription sales was due to an increase in partner services revenue from new and existing customers, offset by a reduction in the Company’s traditional B-2-C revenues.

Sales of over-the-counter products were $655,308 and $1,449,037 for the three and six months ended June 30, 2022, respectively, an increase of $100,243 (18.1%) and $314,828 (27.8%), respectively, over the same periods in 2021.

Gross Profit: Gross profit for the three and six months ended June 30, 2022, was $2,894,130 and $5,744,465, respectively, representing increases of $161,866 and $360,326, respectively, compared with the same periods in 2021. The increases were the result of higher sales volume, somewhat offset by lower margins on our over-the-counter and partner services businesses. Gross margin percentages were 68.9% and 67.5% for the three and six months periods ended June 30, 2022, respectively, which were 0.2 and 1.8 percentage points lower, respectively, versus prior-year periods.

Operating Expenses: Selling, general and administrative expenses were $3,145,329 and $6,167,350 for the three and six months ended June 30, 2022, respectively, an increase of $274,806 (9.6%) and $557,251 (9.9%), respectively, compared to the same periods in 2021. Expense increases for salaries, advertising and marketing, shipping and supplies, software, computer hardware, employee benefits, consulting, and stock-based compensation were principal factors.

Net Income and Adjusted EBITDA: The Company reported net losses of $293,524 and $507,512 for the three and six months ended June 30, 2022, respectively, compared with net losses of $181,811 and $312,836, respectively, for the same periods in 2021.

Earnings before interest, taxes, depreciation and amortization (“EBITDA”), as adjusted for stock-based compensation and certain non-recurring charges (“Adjusted EBITDA”), were $(20,832) for the three months and $43,215 for the six months ended June 30, 2022. That compares with Adjusted EBITDA of $87,636 and $211,749, respectively, for the three and six months ended June 30, 2021. EBITDA and Adjusted EBITDA are non-GAAP financial measures. Definitions of these non-GAAP terms and a reconciliation to GAAP measures are provided below.

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 Income (Loss) (GAAP) to Adjusted EBITDA (Non-GAAP)

About HealthWarehouse.com

HealthWarehouse.com, Inc. (OTCQB: HEWA), a technology company with a focus on healthcare e-commerce, sells and delivers prescription 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 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 (“NABP”) 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 prior filings with the Securities and Exchange Commission.

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