HealthWarehouse.com Reports Results for Third Quarter 2022
HealthWarehouse.com, Inc. (OTC:HEWA) reported net sales of $4,681,302 for Q3 2022, an 11% increase from Q3 2021, driven by growth in partner services. The company recorded a loss from operations of $225,614, yet reported positive cash flow with an Adjusted EBITDA of $47,673. Prescription sales increased by 6.4% to $3,873,323, and OTC sales surged 46.2% to $736,265. Despite higher gross profit, operating expenses rose by 11.2%, leading to net losses slightly widening compared to last year. Future plans include launching a proprietary e-commerce platform aimed at improving customer retention.
- 11% increase in net sales for Q3 2022 compared to Q3 2021.
- Record quarterly prescriptions processed, exceeding prior records by 19%.
- Strong growth in partner services revenue contributing to overall sales.
- Increased OTC product sales by 46.2% in Q3 2022.
- Loss from operations of $225,614 for Q3 2022, wider than the previous year.
- Increase in operating expenses by 11.2%, impacting overall profitability.
- Adjusted EBITDA decreased from $89,797 in Q3 2021 to $47,673 in Q3 2022.
Fifth Consecutive Quarter Reporting Growth
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
Prescription sales were
Sales of over-the-counter products were
Gross Profit: Gross profit for the three and nine 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 Nine Months Ended | |||||||||||||||
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|||||
| Net sales | $ |
4,681,302 |
|
$ |
4,212,127 |
|
$ |
13,196,113 |
|
$ |
11,985,304 |
|
||||
| Cost of sales |
|
1,519,334 |
|
|
1,339,420 |
|
|
4,289,681 |
|
|
3,728,458 |
|
||||
| Gross profit |
|
3,161,968 |
|
|
2,872,707 |
|
|
8,906,432 |
|
|
8,256,846 |
|
||||
| Selling, general and administrative expenses |
|
3,346,699 |
|
|
3,010,060 |
|
|
9,514,046 |
|
|
8,620,158 |
|
||||
| Net income (loss) from operations |
|
(184,731 |
) |
|
(137,353 |
) |
|
(607,614 |
) |
|
(363,312 |
) |
||||
| Interest expense |
|
(40,883 |
) |
|
(43,678 |
) |
|
(125,511 |
) |
|
(130,554 |
) |
||||
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
| Net loss |
|
(225,614 |
) |
|
(181,031 |
) |
|
(733,125 |
) |
|
(493,866 |
) |
||||
| Preferred stock: | ||||||||||||||||
| Series B convertible contractual dividends |
|
(85,559 |
) |
|
(85,559 |
) |
|
(256,675 |
) |
|
(256,675 |
) |
||||
| Net loss attributable to common stockholders | $ |
(311,173 |
) |
$ |
(266,590 |
) |
$ |
(989,800 |
) |
$ |
(750,541 |
) |
||||
| Per share data: | ||||||||||||||||
| Net loss - basic and diluted | $ |
(0.00 |
) |
$ |
(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 |
|
53,904,716 |
|
|
51,884,998 |
|
|
52,926,308 |
|
|
51,751,431 |
|
||||
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 | Nine Months Ended | |||||||||||||||||
| (Unaudited) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||||
| Net loss | $ |
(225,614 |
) |
$ |
(181,031 |
) |
$ |
(733,125 |
) |
$ |
(493,866 |
) |
||||||
| Interest expense |
|
40,883 |
|
|
43,678 |
|
|
125,511 |
|
|
130,554 |
|
||||||
| Depreciation and amortization |
|
34,280 |
|
|
34,210 |
|
|
100,559 |
|
|
100,770 |
|
||||||
| EBITDA (non-GAAP) |
|
(150,451 |
) |
|
(103,143 |
) |
|
(507,055 |
) |
|
(262,542 |
) |
||||||
| Adjustments to EBITDA: | ||||||||||||||||||
| Stock-based compensation |
|
198,124 |
|
|
192,940 |
|
|
597,945 |
|
|
564,090 |
|
||||||
| Adjusted EBITDA | $ |
47,673 |
|
$ |
89,797 |
|
$ |
90,890 |
|
$ |
301,548 |
|
||||||
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
What were the Q3 2022 net sales for HealthWarehouse.com, Inc. (HEWA)?
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How much did prescription sales increase for HealthWarehouse.com (HEWA) in Q3 2022?
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