Reports 9% Increase in Revenues; GLP-1 Medications Contribute to Growth

HealthWarehouse.com, Inc. (OTC:HEWA) announced today its results of operations for the three and six months ended June 30, 2024. The Company reported net sales for the second quarter of 2024 of $5.8 million, a 9% increase over the same period in 2023, resulting from strong growth in partner services and B2C prescription revenue. The Company reported a net loss of $344,000 for the quarter and a net loss of $596,000 for the six months ended June 30, 2024.

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 to and reducing costs of healthcare products for consumers and business partners nationwide.

Joseph Peters, President and CEO, commented, “We reported strong revenue growth during the second quarter, benefiting from growth in sales of GLP-1 weight loss medications in both our partner services and direct-to-consumer (B2C) businesses. GLP-1s have proven effective for several weight-related health concerns. Nationwide, people are seeking out GLP-1s as an option not only for weight loss, but also for diabetes management and potential cardiovascular health benefits. We continue to expand our HealthWarehouse.com catalog, and the branded weight loss medications have been in great demand since we added them.”

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 continue to add new customers in our partner services business, which will contribute to significant future revenue growth. Our incredible team has ensured that we have the infrastructure and processes in place to service whatever challenges our customers throw at us. We have added infrastructure and capacity to our cold chain operations, allowing us to better serve our injectable GLP-1 customers. We wouldn’t be able to accomplish this without the efforts of our dedicated employees, who continue to focus on providing world-class service to our customers,” added Peters.

Overview of Results for Three and Six Months Ended June 30, 2024

Net Sales: Total net sales for the three and six months ended June 30, 2024, were $5.8 million and $10.9 million, respectively, increasing by $452,000 (8.5%) and $296,000 (2.8%), respectively, versus the same periods in 2023.

Prescription sales were $5.1 million and $9.5 million for the three and six months ended June 30, 2024, respectively, an increase of $575,000 (12.8%) and $689,000 (7.8%), respectively, compared with the same periods in 2023. The increase in prescription sales was due to growth in partner services revenue and our direct-to-consumer (B2C) business.

Sales of over-the-counter products were $643,000 and $1.3 million for the three and six months ended June 30, 2024, respectively, a decrease of $107,000 (14.3%) and $378,000 (22.9%), respectively, over the same periods in 2023, primarily due to lower marketplace sales.

Gross Profit: Gross profit for the three and six months ended June 30, 2024, was $3.0 million and $5.9 million, respectively, representing decreases of $192,000 and $369,000, respectively, compared with the same periods in 2023. The decreases were the result of lower margins on our direct-to-consumer prescription and over-the-counter businesses, somewhat offset by higher sales volume. Gross margin percentages were 51.3% and 54.3% for the three and six months ended June 30, 2024, respectively, which were 7.9 and 5.0 percentage points lower, respectively, versus prior-year periods. The reduction was primarily due to lower margins in the B2C and Partner Services prescription businesses.

Operating Expenses: Selling, general and administrative expenses were $3.2 million and $6.4 million for the three and six months ended June 30, 2024, respectively, which were decreases of $362,000 (10.1%) and $665,000 (9.5%), respectively, compared to the same periods in 2023. Expense decreases included reductions in advertising and marketing, salaries, shipping, and stock-based compensation, offset by increases in legal, depreciation and amortization, and software and engineering expenses.

Net Income and Adjusted EBITDA: The Company reported net losses of $344,000 and $596,000 for the three and six months ended June 30, 2024, respectively, compared with net losses of $477,000 and $825,000, respectively, for the same periods in 2023.

Earnings before interest, taxes, depreciation and amortization (“EBITDA”), as adjusted for stock-based compensation and certain non-recurring charges (“Adjusted EBITDA”), were breakeven for the three months and $90,000 for the six months ended June 30, 2024. That compares with Adjusted EBITDA of $(152,000) and $(190,000), respectively, for the three and six months ended June 30, 2023. 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 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 may 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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