HealthWarehouse.com Reports Results for Second Quarter 2022
HealthWarehouse.com, Inc. (OTC:HEWA) reported a 6% revenue increase in Q2 2022, totaling $4,199,832, driven by growth in partner services. However, the company experienced operational losses of $293,524 for the quarter and $507,512 for the first half of the year. Prescription sales rose by 4.5%, while over-the-counter sales jumped by 18.1%. Despite the revenue growth, gross margins declined slightly, and operating expenses increased by nearly 10%. The company is planning to launch a new e-commerce platform in Q4 2022 and has been recognized as a Top Workplace in Greater Cincinnati.
- 6% revenue growth in Q2 2022 to $4,199,832.
- Increase in partner services revenue contributed to sales growth.
- Prescription sales improved by 4.5%, and OTC sales surged by 18.1%.
- Gross profit increased by 5.9% for the quarter.
- Recognized as a Top Workplace in Greater Cincinnati.
- Operational loss of $293,524 in Q2 2022.
- Total losses increased compared to Q2 2021.
- Gross margins declined by 0.2 percentage points for Q2.
- Operating expenses rose by 9.6% in Q2 2022.
Reports
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.”
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
Prescription sales were
Sales of over-the-counter products were
Gross Profit: Gross profit for the three and six months ended
Operating Expenses: Selling, general and administrative expenses were
Net Income and Adjusted EBITDA: The Company reported net losses of
Earnings before interest, taxes, depreciation and amortization (“EBITDA”), as adjusted for stock-based compensation and certain non-recurring charges (“Adjusted EBITDA”), were
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||||
For the Three Months Ended |
|
For the Six Months Ended |
||||||||||||||
|
|
|
||||||||||||||
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||||
| Net sales | $ |
4,199,832 |
|
$ |
3,954,892 |
|
$ |
8,514,812 |
|
$ |
7,773,177 |
|
||||
| Cost of sales |
|
1,305,702 |
|
|
1,222,628 |
|
|
2,770,347 |
|
|
2,389,038 |
|
||||
| Gross profit |
|
2,894,130 |
|
|
2,732,264 |
|
|
5,744,465 |
|
|
5,384,139 |
|
||||
| Selling, general and administrative expenses |
|
3,145,329 |
|
|
2,870,523 |
|
|
6,167,350 |
|
|
5,610,099 |
|
||||
| Net income (loss) from operations |
|
(251,199 |
) |
|
(138,259 |
) |
|
(422,885 |
) |
|
(225,960 |
) |
||||
| Interest expense |
|
(42,325 |
) |
|
(43,552 |
) |
|
(84,627 |
) |
|
(86,876 |
) |
||||
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
| Net loss |
|
(293,524 |
) |
|
(181,811 |
) |
|
(507,512 |
) |
|
(312,836 |
) |
||||
| Preferred stock: | ||||||||||||||||
| Series B convertible contractual dividends |
|
(85,558 |
) |
|
(85,559 |
) |
|
(171,116 |
) |
|
(171,117 |
) |
||||
| Net loss attributable to common stockholders | $ |
(379,082 |
) |
$ |
(267,370 |
) |
$ |
(678,628 |
) |
$ |
(483,953 |
) |
||||
| Per share data: | ||||||||||||||||
| Net loss - basic and diluted | $ |
(0.01 |
) |
$ |
(0.00 |
) |
$ |
(0.01 |
) |
$ |
(0.01 |
) |
||||
| Series B convertible contractual dividends | $ |
(0.00 |
) |
$ |
(0.00 |
) |
$ |
(0.00 |
) |
$ |
(0.00 |
) |
||||
| Net loss attributable to common stockholders - basic | ||||||||||||||||
| and diluted | $ |
(0.00 |
) |
$ |
(0.00 |
) |
$ |
(0.01 |
) |
$ |
(0.01 |
) |
||||
| Weighted average common shares outstanding - basic and diluted |
|
52,704,784 |
|
|
51,734,119 |
|
|
52,428,995 |
|
|
51,683,540 |
|
||||
Use of Non-GAAP Financial Measures
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)
Three Months Ended |
|
Six Months Ended |
||||||||||||||
|
|
|
||||||||||||||
| (Unaudited) | 2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
| Net loss | $ |
(293,524 |
) |
$ |
(181,811 |
) |
$ |
(507,512 |
) |
$ |
(312,836 |
) |
||||
| Interest expense |
|
42,325 |
|
|
43,552 |
|
|
84,627 |
|
|
86,876 |
|
||||
| Depreciation and amortization |
|
33,437 |
|
|
33,280 |
|
|
66,279 |
|
|
66,559 |
|
||||
| EBITDA (non-GAAP) |
|
(217,762 |
) |
|
(104,979 |
) |
|
(356,606 |
) |
|
(159,401 |
) |
||||
| Adjustments to EBITDA: | ||||||||||||||||
| Stock-based compensation |
|
196,930 |
|
|
192,615 |
|
|
399,821 |
|
|
371,150 |
|
||||
| Adjusted EBITDA | $ |
(20,832 |
) |
$ |
87,636 |
|
$ |
43,215 |
|
$ |
211,749 |
|
||||
About
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
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FAQ
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