11% Increase in Revenues

Fifth Consecutive Quarter Reporting Growth

Record Quarter for Prescriptions Processed

HealthWarehouse.com, Inc. (OTC:HEWA) announced today that net sales for the third quarter of 2022 totaled $4,681,302, an 11% increase over the same period in 2021, resulting from strong growth in partner services revenue. The Company reported a loss from operations of $225,614 for the quarter, but positive cash flow, as reflected by its internal non-GAAP measure of Adjusted EBITDA as defined below, which was $47,673 in the third 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 for the fifth consecutive quarter, primarily due to the growth of our partner services business. The investments in our technology platform allowed us to set a new record for quarterly prescriptions processed, exceeding the prior record by 19%, while maintaining our best-in-class customer service. 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 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 still on target for launch of a proprietary e-commerce platform and pharmacy technology in the next few months 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 Nine Months Ended September 30, 2022:

Net Sales: Total net sales for the three and nine months ended June 30, 2022, were $4,681,302 and $13,196,113, respectively, and increased $469,175 (11.1%) and $1,210,809 (10.1%), respectively, versus the same periods in 2021.

Prescription sales were $3,873,323 and $10,676,238 for the three and nine months ended September 30, 2022, respectively, an increase of $232,227 (6.4%) and $546,034 (5.3%), 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 $736,265 and $2,232,934 for the three and nine months ended September 30, 2022, respectively, an increase of $232,737 (46.2%) and $595,196 (36.3%), respectively, over the same periods in 2021.

Gross Profit: Gross profit for the three and nine months ended September 30, 2022, was $3,161,968 and $8,906,432, respectively, representing increases of $289,260 (10.1%) and $649,586 (7.9%), 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. The gross margin percentage was 67.5% for both the three- and nine-months periods ended September 30, 2022. Those margins were 0.7 and 1.4 percentage points lower, respectively, versus prior-year periods.

Operating Expenses: Selling, general and administrative expenses were $3,346,698 and $9,514,046 for the three and nine months ended September 30, 2022, respectively, an increase of $336,639 (11.2%) and $893,889 (10.3%), respectively, compared to the same periods in 2021. Expense increases for salaries, shipping and supplies, software, computer hardware, and stock-based compensation were principal factors.

Net Income and Adjusted EBITDA: The Company reported net losses of $225,614 and $733,125 for the three and nine months ended September 30, 2022, respectively, compared with net losses of $181,031 and $493,866, 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 $47,673 for the three months and $90,890 for the nine months ended September 30, 2022. That compares with Adjusted EBITDA of $89,797 and $301,548, respectively, for the three and nine months ended September 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.

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 (“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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