HealthWarehouse.com, Inc.

CIK:0000754813|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Consolidated Statements Of Operations
Net sales	$ 10,384,893	$ 7,018,137
Cost of sales	3,647,433	2,546,392
Gross profit	6,737,460	4,471,745
Selling, general and administrative expenses	8,026,636	4,890,280
Loss from operations	(1,289,176)	(418,535)
Interest expense	119,027	208,147
Net loss	(1,408,203)	(626,682)
Preferred stock:
Series B convertible contractual dividends	(342,233)	(319,854)
Net loss attributable to common stockholders	$ (1,750,436)	$ (946,536)
Per share data:
Net loss - basic and diluted	$ (0.03)	$ (0.02)
Series B convertible contractual dividends	(0.01)	(0.01)
Net loss attributable to common stockholders - basic and diluted	$ (0.04)	$ (0.03)
Weighted average number of common shares outstanding - basic and diluted	39,743,032	37,574,278

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities
Net loss	$ (1,408,203)	$ (626,682)
Adjustments to reconcile net loss to net cash used in operating activities:
Change in fair value of collateral securing employee advances		2,143
Depreciation and amortization	149,553	184,320
Stock-based compensation	327,202	320,366
Gain on settlement of accounts payable	(99,774)	(111,374)
Amortization of debt discount	15,500	129,767
Changes in operating assets and liabilities:
Accounts receivable	(13,804)	49,259
Inventories	(26,768)	(38,411)
Prepaid expenses and other current assets	(3,858)	(21,516)
Accounts payable - trade	527,873	(241,915)
Accounts payable - related parties	(862)	(83,452)
Accrued expenses and other current liabilities	416,311	(110,786)
Net cash used in operating activities	(116,830)	(548,281)
Cash flows from investing activities
Change in restricted cash	(98,167)	50,000
Capital expenditures	(9,703)	(6,331)
Website development costs	(13,700)	(17,972)
Net cash (used in) provided by investing activities	(121,570)	25,697
Cash flows from financing activities
Principal payments on equipment leases payable	(46,143)	(64,101)
Proceeds from exercise of common stock options	1,833
Proceeds from issuance of notes payable	358,911	250,000
Repayment of notes payable	(50,000)	(108,911)
Repayment of notes payable - related parties	(33,590)	(49,206)
Net cash provided by financing activities	231,011	27,782
Net decrease in cash	(7,389)	(494,802)
Cash - beginning of period	11,217	506,019
Cash - end of period	3,828	11,217
Supplemental Cash Flow Information:
Interest paid	95,186	78,489
Non-cash investing and financing activities:
Issuance of Series B preferred stock for settlement of accrued dividends	319,853	298,918
Cashless exercise of warrants and stock options into common stock	2,647	95
Warrants issued as debt discount in connection with notes payable	15,500	71,400
Accrual of contractual dividends on Series B convertible preferred stock	342,233	319,854
Conversion of accounts payable to notes payable - related party	77,606
Conversion of accounts payable to common stock	$ 698,594

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash	$ 3,828	$ 11,217
Restricted cash	243,255	145,088
Accounts receivable, net	65,431	51,627
Inventories	209,415	182,647
Prepaid expenses and other current assets	85,576	81,718
Total current assets	607,505	472,297
Property and equipment, net	331,759	409,248
Web development costs, net	35,901	84,562
Total assets	975,165	966,107
Current liabilities:
Accounts payable - trade	1,841,548	2,189,649
Accounts payable - related parties		862
Accrued expenses and other current liabilities	1,036,356	597,665
Current portion of equipment lease payable		46,143
Notes payable	1,300,000	991,089
Note payable - related parties	67,905	23,889
Redeemable preferred stock - Series C; par value $0.001 per share; 10,000 designated Series C: 10,000 issued and outstanding as of December 31, 2016 and December 31, 2015 (aggregate liquidation preference of $1,000,000)	1,000,000	1,000,000
Total current liabilities	5,245,809	4,849,297
Commitments and contingencies
Stockholders' deficiency:
Preferred stock - par value $0.001 per share; authorized 1,000,000 shares; issued and outstanding as of December 31, 2016 and December 31, 2015 as follows:
Convertible preferred stock - Series A - 200,000 shares designated Series A; 44,443 shares available to be issued; no shares issued and outstanding
Convertible preferred stock - Series B - 625,000 shares designated Series B; 517,359 and 483,512 shares issued and outstanding as of December 31, 2016 and December 31, 2015, respectively (aggregate liquidation preference of $5,231,274 and $4,889,043 as of December 31, 2016 and December 31, 2015, respectively)	517	484
Common stock - par value $0.001 per share; authorized 100,000,000 (see Note 8), 43,761,825 and 38,844,374 shares issued and 42,582,613 and 37,665,162 shares outstanding as of December 31, 2016 and 2015, respectively	43,762	38,844
Additional paid-in capital	32,014,629	30,656,598
Treasury stock, at cost, 1,179,212 shares as of December 31, 2016 and 2015	(3,419,715)	(3,419,715)
Accumulated deficit	(32,909,837)	(31,159,401)
Total stockholders' deficiency	(4,270,644)	(3,883,190)
Total liabilities and stockholders' deficiency	$ 975,165	$ 966,107