HealthWarehouse.com Reports First Quarter 2022 Results

CINCINNATI–(BUSINESS WIRE)–HealthWarehouse.com, Inc. (OTC: HEWA) today announced that net sales for the first quarter of 2022 were $4,314,980, an increase of 13% over the same period in 2021, resulting from strong revenue growth from partner services and increased direct-to-consumer sales. The Company reported an operating loss of $213,988 for the quarter while generating positive cash flow of $64,047 as evidenced by Adjusted EBITDA (the Company’s internal non-GAAP measure).

HealthWarehouse.com, a healthcare e-commerce technology company, sells and delivers prescription drugs in all 50 states as an approved digital pharmacy through the National Association of Boards of Pharmacy (NABP). HealthWarehouse.com provides a platform focused on improving access and reducing the cost of healthcare products for consumers nationwide. »

Joseph Peters, President and CEO, said, “We are pleased to report revenue growth for the quarter in both our partner services and our direct-to-consumer businesses. We continue to expand our healthcare partner offerings, customize our platform, develop APIs, and add resources to grow and support our partner services business. At the same time, we are developing better technological tools to attract and retain traditional customers.

“In April,” Mr. Peters continued, “we were honored when Consumer Reports named Healthwarehouse.com a leader in the direct-to-consumer online pharmacy space. We’re the only provider listed by Consumer Reports that offers a full line of prescription drugs, has licenses to ship to all 50 states, and accepts payments from health savings accounts.

HealthWarehouse.com continues to invest in proprietary technology to stay on top of new developments and offerings in the healthcare world, with a focus on customer experience, operational efficiency and scalability.

“We plan to launch a proprietary e-commerce platform and pharmacy technology in 2022 that will enhance our customer experience and, therefore, improve customer acquisition and retention in our direct-to-consumer business. . We are building an outstanding technology team and plan to expand it to accelerate progress on our company initiatives. Additionally, our new technology will facilitate and expand the services provided to our healthcare partner customers to support our growth initiatives. We are well positioned to be a technology leader in the industry, delivering seamless and affordable healthcare solutions while maintaining world-class service levels,” added Mr. Peters.

Overview of the first quarter of 2022:

Net sales: Net sales for the first quarter of 2022 increased to $4,314,980 from $3,818,285 for the first quarter of 2021, an increase of $496,695, or 13.0%. Prescription sales were $3,435,123 for the quarter ended March 31, 2022, compared to $3,163,793 for the quarter ended March 31, 2021, an increase of $271,329, or 8.6% . These increases were primarily driven by revenue growth from partner services, offset by a reduction in our direct-to-consumer (B2C) business. Net over-the-counter product sales increased 37.0% to $793,729 during the three months ended March 31, 2022 from $579,145 during the three months ended March 31, 2021, primarily due to sales of test kits and supplements related to COVID-19. 19.

Gross profit: Gross profit was $2,850,335 for the first quarter of 2022, an increase of $198,460, or 7.5%, over the first quarter of 2021. Gross margin percentage decreased from 69, 5% for the first quarter of 2021 to 66.1% for the first quarter of 2022. , mainly due to lower margins on the range of products sold in our over-the-counter and partner services businesses.

Operating Expenses : Operating expenses totaled $3,022,021 for the first quarter of 2022 compared to $2,739,576 for the first quarter of 2021, an increase of $282,445 or 10.3%. Expenses increased for salaries and related expenses, shipping and shipping supplies, stock-based compensation, advertising and marketing, software and accounting expenses. The increases were partially offset by a decrease in legal fees.

Net loss and adjusted EBITDA: The Company reported a net loss of $213,988 for the first quarter of 2022, compared to a net loss of $131,025 during the same period in 2021. Adjusted EBITDA was $64,047 in the first quarter of 2022, compared to 124 $114 in the previous quarter.

HEALTHWAREHOUSE.COM, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)
For the three months ended
March, 31st,

2022

2021

Net sales

$

4,314,980

$

3,818,285

Cost of sales

1,464,645

1,166,410

Gross profit

2,850,335

2,651,875

Operating Expenses

3,022,021

2,739,576

Net operating profit (loss)

(171,686

)

(87,701

)

Interest expense

(42,302

)

(43,324

)

Net loss

(213,988

)

(131,025

)

Preferred Stock:
Series B Convertible Contractual Dividends

(85,558

)

(85,558

)

Net loss attributable to common shareholders

$

(299,546

)

$

(216,583

)

Data per share:
Net loss – basic and diluted

$

(0.00

)

$

(0.00

)

Series B Convertible Contractual Dividends

$

(0.00

)

$

(0.00

)

Net loss attributable to common shareholders – basic
and diluted

$

(0.00

)

$

(0.00

)

Weighted Average Common Shares Outstanding – Basic and Diluted

52 150 142

51,632,399

Use of Non-GAAP Financial Measures

HealthWarehouse.com, Inc. (the “Company”) prepares its consolidated financial statements in accordance with 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 one-time charges. . EBITDA and Adjusted EBITDA are not performance measures defined in accordance with GAAP. However, Adjusted EBITDA is used internally to plan and assess the Company’s performance. Accordingly, management believes that disclosure of this measure provides lenders and other investors with additional insight into the Company’s operations which, when coupled with GAAP results, provides a more complete understanding of the Company’s financial performance.

Adjusted EBITDA should not be considered an alternative to net income, net loss or net cash provided by or used in operating activities as a measure of operating results or liquidity. It may not be comparable to similarly titled measures used by other companies and 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 completed
March, 31st,

2022

2021

Net loss

$

(213,988

)

.

$

(131,025

)

Interest expense

42,302

43,424

Depreciation and amortization

32,842

33,280

EBITDA (non-GAAP)

(138,844

)

(54,321

)

Adjustments to EBITDA:
Stock-based compensation

202 891

178,535

Adjusted EBITDA

$

64,047

$

124 214

About HealthWarehouse.com

HealthWarehouse.com, Inc. (OTCQB: HEWA), a healthcare e-commerce technology company, sells and delivers prescription drugs in all 50 states as an approved digital pharmacy through the National Association of Boards of Pharmacy (NABP). HealthWarehouse.com provides a platform focused on improving access and reducing the cost of healthcare products for consumers nationwide. Based in Florence, Kentucky, the company operates America’s leading online pharmacy and a pioneer in affordable healthcare. As one of the first digital pharmacies approved by the National Association of Boards of Pharmacy (“NABP”), HealthWarehouse.com is on a mission to provide affordable healthcare and incredible patient services to help Americans. Learn more about 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, the Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, the statements of which are based on our current expectations, estimates, forecasts and projections. Statements that are not historical facts, including statements about the Company’s beliefs, expectations and future plans and strategies, are forward-looking statements. Actual results may differ materially from those expressed in forward-looking statements or management’s expectations. Important factors that could cause or contribute to actual results being materially and adversely different from those described or implied by the forward-looking statements include, among others, competitive risks, growth management, access to sufficient capital to fund our business and growth, new products, services and technologies, potential fluctuations in operating results, international expansion, results of legal proceedings and claims, distribution center optimization, seasonality, trade agreements, acquisitions and strategic transactions, exchange rates, system disruption, cyberattacks, access to sufficient inventory, government regulation and taxation, payments and fraud. Further information about factors that 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 filings with the Securities and Exchange Commission. the United States.

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