HealthWarehouse.com (HEWA) 10-Q 16 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	7-May-14
Document And Entity Information	'	'
Entity Registrant Name	'HealthWarehouse.com, Inc.	'
Entity Central Index Key	'0000754813	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	26,550,380
Document Fiscal Period Focus	'Q1	'
Document Fiscal Year Focus	'2014	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2014	Dec. 31, 2013
Current assets:	'	'
Cash	$59,800	$67,744
Accounts receivable, net of allowance of $59,534 and $250,828 as of March 31, 2014 and December 31, 2013	74,767	307,211
Inventories - finished goods, net	246,151	277,300
Prepaid expenses and other current assets	40,612	59,143
Total current assets	421,330	711,398
Property and equipment, net of accumulated depreciation of $608,109 and $576,590 as of March 31, 2014 and December 31, 2013	593,116	624,634
Web development costs, net of accumulated amortization of $24,745 and $14,643 as of March 31, 2014 and December 31, 2013	108,544	83,780
Total assets	1,122,990	1,419,812
Current liabilities:	'	'
Accounts payable - trade	2,926,669	3,310,000
Accounts payable - related parties	78,246	83,691
Accrued expenses and other current liabilities	441,574	621,052
Deferred revenue	78,790	95,792
Current portion of equipment lease payable	58,266	56,323
Notes payable and other advances, net of debt discount of $212,830 as of March 31, 2014	487,170	'
Note payable and other advances - related parties	78,095	78,095
Redeemable preferred stock - Series C; par value $0.001 per share; 10,000 designated Series C: 10,000 issued and outstanding as of March 31, 2014 and December 31, 2013 (aggregate liquidation preference of $1,000,000)	1,000,000	1,000,000
Total current liabilities	5,148,810	5,244,953
Long term liabilities:	'	'
Notes payable, net of debt discount of $29,133 as of March 31, 2014 and $269,998 as of December 31, 2013	70,867	430,002
Long term portion of equipment lease payable	94,862	109,964
Total long term liabilities	165,729	539,966
Total liabilities	5,314,539	5,784,919
Commitments and contingencies	'	'
Preferred stock - par value $0.001 per share; authorized 1,000,000 shares; issued and outstanding as of March 31, 2014 and December 31, 2013 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; 451,879 and 422,315 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively (aggregate liquidation preference of $4,344,987 and $4,270,257 as of March 31, 2014 and December 31, 2013, respectively)	452	422
Common stock - par value $0.001 per share; authorized 50,000,000 shares; 27,729,592 and 27,708,303 shares issued and 26,550,380 and 26,529,091 shares outstanding as of March 31, 2014 and December 31, 2013, respectively	27,731	27,708
Additional paid-in capital	27,721,737	27,166,147
Employee advances	-10,715	-9,001
Treasury stock, at cost, 1,179,212 shares as of March 31, 2014 and December 31, 2013	-3,419,715	-3,419,715
Accumulated deficit	-28,511,039	-28,130,668
Total stockholders' deficiency	-4,191,549	-4,365,107
Total liabilities and stockholders' deficiency	$1,122,990	$1,419,812

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Current assets:	'	'
Property and equipment, net of accumulated depreciation	$608,109	$576,590
Web development costs, net of accumulated amortization	24,745	14,643
Current liabilities:	'	'
Current Portion Notes payable and other advances, net of debt discount	212,830	'
Redeemable preferred stock Series C, par value	0.001	0.001
Redeemable preferred stock Series C, shares designated	10,000	10,000
Redeemable preferred stock Series C, shares issued	10,000	10,000
Redeemable preferred stock Series C, shares outstanding	10,000	10,000
Redeemable preferred stock Series C, aggregate liquidation preference	1,000,000	1,000,000
Long term liabilities:	'	'
Current Portion Notes payable, net of debt discount	29,133	269,998
Stockholders' deficiency:	'	'
Preferred stock, par value	$0.00	$0.00
Preferred stock, authorized	1,000,000	1,000,000
Preferred stock, shares issued	1,000,000	1,000,000
Preferred stock, shares outstanding	1,000,000	1,000,000
Series A Convertible preferred stock, shares designated	200,000	200,000
Series A Convertible preferred stock, shares available to be issued	44,443	44,443
Series A Convertible preferred stock, shares issued	0	0
Series A Convertible preferred stock, shares outstanding	0	0
Series B Convertible preferred stock, shares designated	625,000	625,000
Series B Convertible preferred stock, shares issued	451,879	422,315
Series B Convertible preferred stock, shares outstanding	451,879	422,315
Series B Convertible preferred stock, aggregate liquidation preference	$4,344,987	$4,270,257
Common stock, par value	$0.00	$0.00
Common stock, authorized	50,000,000	50,000,000
Common stock, shares issued	27,729,592	27,708,303
Common stock, shares outstanding	26,550,380	26,529,091
Treasury stock, shares	1,179,212	1,179,212

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Condensed Consolidated Statements Of Operations	'	'
Net sales	$1,716,964	$2,409,916
Cost of sales	731,408	1,235,156
Gross profit	985,556	1,174,760
Operating expenses:	'	'
Selling, general and administrative expenses	1,217,661	2,389,103
Loss from operations	-232,105	-1,214,343
Other income (expense):	'	'
Loss on extinguishment of debt	'	-2,792,900
Interest expense	-73,536	-71,123
Total other expense	-73,536	-2,864,023
Net loss	-305,641	-4,078,366
Series B convertible contractual dividends	-74,730	-69,840
Series B convertible deemed dividends	'	-1,532,722
Loss attributable to common stockholders	($380,371)	($5,680,928)
Per share data:	'	'
Net loss - basic and diluted	($0.01)	($0.26)
Series B convertible contractual dividends	$0	$0
Series B convertible deemed dividends	'	($0.10)
Net loss attributable to common stockholders - basic and diluted	($0.01)	($0.36)
Weighted average number of common shares outstanding - basic and diluted	26,546,832	15,609,892

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Cash flows from operating activities	'	'	'
Net loss	($305,641)	($4,078,366)	($5,489,892)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'	'
Provision for doubtful accounts	-41,458	-31,528	'
Provision for employee advance reserve	-1,714	'	'
Depreciation and amortization	41,621	35,846	'
Stock-based compensation	162,763	330,021	'
Warrants issued to 2012 private placement investors	'	487,200	'
Loss on extinguishment of notes and accounts payable	'	2,792,900	'
Imputed value of services contributed	87,500	87,500	'
Amortization of debt discount	54,035	44,363	'
Changes in operating assets and liabilities:	'	'	'
Accounts receivable	273,902	-6,238	'
Inventories - finished goods	31,149	85,519	'
Prepaid expenses and other current assets	18,531	10,451	'
Accounts payable - trade	-383,331	-91,216	'
Accounts payable - related parties	-5,445	185,999	'
Accrued expenses and other current liabilities	25,172	-340,265	'
Deferred revenue	-17,002	30,441	'
Net cash used in operating activities	-59,918	-457,373	-1,024,781
Cash flows from investing activities	'	'	'
Change in restricted cash	'	725,002	'
Website development costs	-34,866	-25,490	'
Net cash (used in) and provided by investing activities	-34,866	699,512	'
Cash flows from financing activities	'	'	'
Principal payments on equipment leases payable	-13,159	-11,759	'
Proceeds from issuance of notes payable	100,000	500,000	'
Repayment of notes payable	'	-2,000,000	'
Repayment of convertible notes payable	'	-1,000,000	'
Proceeds from the sale of common stock	'	2,526,973	'
Proceeds from offering prior to reaching minimum offering amount	'	125,000	'
Net cash provided by financing activities	86,841	140,214	'
(Net decrease) net increase in cash	-7,944	382,353	'
Cash - beginning of period	67,744	'	'
Cash - end of period	59,800	382,353	67,744
Interest	25,523	367,978	'
Non-cash investing and financing activities:	'	'	'
Issuance of Series B preferred stock for settlement of accrued dividends	279,380	261,084	'
Cashless exercise of warrants into common stock	'	6,934	'
Warrants issued as debt discount in connection with notes payable	26,000	315,300	'
Accrual of contractual dividends on Series B convertible preferred stock	74,730	69,840	'
Deemed dividends on Series B convertible preferred stock	'	1,532,722	'
Common stock and warrants issued in exchange of notes and accounts payable	'	3,625,900	'
Conversion of accounts payable to notes payable	'	$40,000	'

Organization_and_Basis_of_Pres

Organization and Basis of Presentation	3 Months Ended
	Mar. 31, 2014
Organization And Basis Of Presentation	'
Note 1 - Organization and Basis of Presentation	'
	HealthWarehouse.com, Inc., a Delaware company incorporated in 1998, (the “Company”) is a U.S. licensed virtual retail pharmacy (“VRP”) and healthcare e-commerce company that sells brand name and generic prescription drugs as well as over-the-counter (“OTC”) medical products. The Company’s objective is to be viewed by individual healthcare product consumers as a low-cost, reliable and hassle-free provider of prescription drugs and OTC medical products. The Company is presently licensed as a mail-order pharmacy in 50 states in the United States and the District of Columbia.
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and disclosures required by GAAP for annual financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the condensed consolidated financial statements of the Company as of March 31, 2014 and for the three months ended March 31, 2014 and 2013. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the operating results for the full year ending December 31, 2014 or any other period. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related disclosures of the Company as of December 31, 2013 and for the year then ended, which were filed with the Securities and Exchange Commission on Form 10-K on April 15, 2014.

Going_Concern_and_Managements_

Going Concern and Management's Liquidity Plans	3 Months Ended
	Mar. 31, 2014
Going Concern And Managements Liquidity Plans	'
Note 2 - Going Concern and Management's Liquidity Plans	'
	Since inception, the Company has financed its operations primarily through debt and equity financings and advances from related parties. As of March 31, 2014, the Company had a working capital deficiency of $4,727,480 and an accumulated deficit of $28,511,039. During the quarter ended March 31, 2014 and the year ended December 31, 2013, the Company incurred net losses of $305,641 and $5,489,892, respectively and used cash in operating activities of $59,918 and $1,024,781, respectively.   These conditions raise substantial doubt about the Company’s ability to continue as a going concern.
	Subsequent to March 31, 2014, the Company (a) raised an additional $50,000 in debt financing and (b) continues to incur net losses, use cash in operating activities and experience cash and working capital constraints. See Note 10.
	On February 13, 2013, the Company received a Notice of Redemption related to its Series C Redeemable Preferred Stock aggregating $1,000,000 (see Note 6). As a result of receiving the Notice of Redemption, the Company must now apply all of its assets to redemption of the Series C Preferred Stock and to no other corporate purpose, except to the extent prohibited by Delaware law governing distributions to stockholders (the Company is not permitted to utilize toward the redemption those assets required to pay its debts as they come due and those assets required to continue as a going concern).
	The Company recognizes it will need to raise additional capital in order to fund operations, meet its payment obligations and execute its business plan. There is no assurance that additional financing will be available when needed or that management will be able to obtain financing on terms acceptable to the Company and whether the Company will become profitable and generate positive operating cash flow. If the Company is unable to raise sufficient additional funds, it will have to develop and implement a plan to further extend payables, attempt to extend note repayments, attempt to negotiate the preferred stock redemption and reduce overhead until sufficient additional capital is raised to support further operations. There can be no assurance that such a plan will be successful.  If the Company is unable to obtain financing on a timely basis, the Company could be forced to sell its assets, discontinue its operation and /or seek reorganization under the U.S. bankruptcy code.
	Accordingly, the accompanying condensed consolidated financial statements have been prepared in conformity with GAAP, which contemplates continuation of the Company as a going concern and the realization of assets and the satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the condensed consolidated financial statements do not necessarily represent realizable or settlement values. The condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Summary_of_Significant_Account

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2014
Summary Of Significant Accounting Policies	'
Note 3 - Summary of Significant Accounting Policies	'
	Principles of Consolidation
	The condensed consolidated financial statements include the accounts of HealthWarehouse.com, Inc., Hwareh.com, Inc., Hocks.com, Inc., ION Holding NV, ION Belgium NV and Pagosa, its wholly-owned subsidiaries. ION Holding NV and ION Belgium NV are inactive subsidiaries. All material inter-company balances and transactions have been eliminated in consolidation.
	On June 4, 2013, the Company formed a wholly-owned subsidiary called Pagosa Health LLC (“Pagosa”).  On January 14, 2014, the Company closed Pagosa and decided to focus on its core consumer prescription business. Pagosa had a de minimis impact on the Company’s operations or the results for the three months ended March 31, 2014.
	Use of Estimates
	The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.  The Company’s significant estimates include reserves related to accounts receivable and inventory, the recoverability and useful lives of long-lived assets, the valuation allowance related to deferred tax assets, the valuation of equity instruments and debt discounts.
	Net Loss Per Share of Common Stock
	Basic net loss per share is computed by dividing net loss attributable to Common Stockholders by the weighted average number of common shares outstanding during the period.  Diluted net loss per share reflects the potential dilution that could occur if securities or other instruments to issue Common Stock were exercised or converted into Common Stock.  Potentially dilutive securities are excluded from the computation of diluted net loss per share if their inclusion would be anti-dilutive and consist of the following:
		March 31,
		2014		2013
	Options		2,514,150		2,451,483
	Warrants		2,492,846		6,047,119
	Series B Convertible Preferred Stock		3,714,445		3,407,313
	Total potentially dilutive shares		8,721,441		11,905,915
	Recently Issued Accounting Pronouncements
	The Company has determined there are no new accounting standards that are expected to have a material impact on the Company's condensed consolidated financial statements.

Accrued_Expenses_and_Other_Cur

Accrued Expenses and Other Current Liabilities	3 Months Ended
	Mar. 31, 2014
Accrued Expenses And Other Current Liabilities	'
Note 4 - Accrued Expenses and Other Current Liabilities	'
	Accrued expenses and other current liabilities consisted of the following:
		March 31,		December 31,
		2014		2013
	Deferred Rent	$	43,704	$	46,254
	Advertising		75,000		75,000
	Salaries and Benefits		178,393		132,048
	Customer Payables		19,697		39,618
	Dividend Payable		74,729		279,380
	Accrued Interest		46,429		45,616
	Other		3,622		3,136
	Total	$	441,574	$	621,052

Notes_Payable

Notes Payable	3 Months Ended
	Mar. 31, 2014
Notes Payable	'
Note 5 - Notes Payable	'
	The Company is a party to a Loan and Security Agreement (the “Loan Agreement”) with a lender (the "Lender"). Under the terms of the Loan Agreement, the Company borrowed an aggregate of $700,000 from the Lender (the “Loan”), including $100,000 during the three months ended March 31, 2014.  The Loan is evidenced by a promissory note (the “Note”) in the face amount of $700,000 (as amended).  The Note bears interest on the unpaid principal balance of the Note until the full amount of principal has been paid at a floating rate equal to the Prime Rate plus four and one-quarter percent (4.25%) per annum (7.50% as of March 31, 2014).  Under the terms of the Loan Agreement, the Company has agreed to make monthly payments of accrued interest on the first day of every month. The principal amount and all unpaid accrued interest on the Note is payable on March 1, 2015, or earlier in the event of default or a sale or liquidation of the Company. The Loan may be prepaid in whole or in part at any time by the Company without penalty.   The Note contains financial covenants which require the Company to meet certain minimum targets for earnings before interest, taxes and non-cash expenses, including depreciation, amortization and stock-based compensation (“EBITDAS”).  In connection with the Loan Agreement, the Company granted the Lender five-year warrants to purchase an aggregate of 1,050,000 shares of Common Stock at an exercise price of $0.35 per share, of which 150,000 warrants were issued during the three months ended March 31, 2014.  The warrants contain customary anti-dilution provisions. The warrants had a relative fair value of $392,500, of which $26,000 was established as debt discount during the three months ended March 31, 2014 and will be amortized using the effective interest method over the term of the Note.  The Company amortized $49,435 of the debt discount as interest expense during the three months ended March 31, 2014 and $212,830 remained unamortized as of March 31, 2014.  Including the value of warrants issued in connection with Note and subsequent amendments, the Note had an effective interest rate of 40% per annum.  See Note 10 for subsequent events.
	The Company granted the Lender a first, priority security interest in all of the Company’s assets, in order to secure the Company’s obligation to repay the Loan. The Loan Agreement contains customary negative covenants restricting the Company’s ability to take certain actions without the Lender’s consent, including incurring additional indebtedness, transferring or encumbering assets, paying dividends or making certain other payments, and acquiring other businesses. Upon the occurrence of an event of default, the Lender has the right to impose interest at a rate equal to five percent (5.0%) per annum above the otherwise applicable interest rate (the “Default Rate”). The repayment of the Loan may be accelerated prior to the maturity date upon certain specified events of default, including failure to pay, bankruptcy, breach of covenant, and breach of representations and warranties.
	The Company recorded amortization of debt discount associated with notes payable of $54,035 and $44,363 for the three months ended March 31, 2014 and 2013, respectively.

Stockholders_Deficiency

Stockholders' Deficiency	3 Months Ended
	Mar. 31, 2014
Stockholders Deficiency	'
Note 6 - Stockholders' Deficiency	'
	Common Stock
	On January 15, 2014, the Company issued 21,289 shares of Common Stock to an employee in accordance with an employment agreement.  The fair value of the shares was $10,646 based on the closing price on the date of issuance.
	Preferred Stock
	As of March 31, 2014 and December 31, 2013, the Company had accrued contractual dividends of $74,730 and $279,380, respectively, related to the Series B Preferred Stock. On January 1, 2014 and 2013, the Company issued 29,564 and 27,630 shares of Series B convertible preferred stock valued at $279,380 and $261,084, respectively, representing approximately $0.66 in value per share of Series B Preferred Stock outstanding on each date, to the Series B convertible preferred stock owners as payment in kind for dividends.
	Stock Options
	Stock-based compensation expense related to stock options was recorded in the condensed consolidated statements of operations as a component of selling, general and administrative expenses and totaled $151,853 and $312,444 for the three months ended March 31, 2014 and 2013, respectively.
	As of March 31, 2014, stock-based compensation expense related to stock options of $1,476,372  remains unamortized, including $584,803 which is being amortized over the weighted average remaining period of 1.5 years.  The remaining $891,569 is related to a performance based option where vesting is currently deemed to be improbable and no amount is being amortized.
	Summary
	A summary of the stock option activity during the three months ended March 31, 2014 is presented below:
											Weighted
							Weighted				Average
							Average				Remaining
			Number of				Exercise				Life				Intrinsic
			Options				Price				In Years				Value
	Outstanding, January 1, 2014			2,543,150			$	2.37
	Granted			-				-
	Exercised			-				-
	Forfeited			(29,000	)			3.22
	Outstanding, March 31, 2014			2,514,150			$	2.36				5.7			$	-
	Exercisable, March 31, 2014			1,398,475			$	2.78				4.1			$	-
	The following table presents information related to stock options at March 31, 2014:
					Options Outstanding								Options Exercisable
	Range of Exercise Price				Weighted Average Exercise Price				Outstanding Number of Options				Weighted Average Exercise Price				Weighted Average Remaining Life In Years		Exercisable Number of Options
	$	0.30 - $2.20			$	1.11				1,339,400			$	1.58				2.6		573,725
	$	2.21 - $3.80				3.23				757,750				2.95				3.8		507,750
	$	3.81 - $6.99				4.79				417,000				4.66				7.5		317,000
					$	2.36				2,514,150			$	2.78				4.1		1,398,475
	Warrants
	Valuation
	In applying the Black-Scholes option pricing model to stock warrants, the Company used the following weighted average assumptions:
				March 31,
				2014		2013
	Risk free interest rate			1.74%		0.88%
	Dividend yield			0.00%		0.00%
	Expected volatility			171.00%		164.30%
	Expected life in years			5		5
	Grants
	See Note 5 – Notes Payable for details regarding warrants granted in connection with the issuances of notes payable.
	The weighted average fair value of the stock warrants granted during the three months ended March 31, 2014 and 2013, was $0.23 and $1.38 per share, respectively.
	Stock-based compensation expense related to warrants for the three months ended March 31, 2014 and 2013 was recorded in the condensed consolidated statements of operations as a component of selling, general and administrative expenses and totaled $264 and $504,777, respectively.  As of March 31, 2014, stock-based compensation expense related to warrants of $580,525 remains unamortized, including $3,685 which is being amortized over the weighted average remaining period of 1.5 years.  The remaining $576,840 is related to a performance based warrant where vesting is currently deemed to be improbable and no amount is being amortized.
	A summary of the stock warrant activity during the three months ended March 31, 2014 is presented below:
							Weighted				Average
							Average				Remaining
			Number of				Exercise				Life				Intrinsic
			Warrants				Price				In Years				Value
	Outstanding, January 1, 2014			2,342,846			$	0.96
	Granted			150,000			$	0.35
	Exercised			-			$	-
	Forfeited			-				-
	Outstanding, March 31, 2014			2,492,846			$	0.92				3.7			$	-
	Exercisable, March 31, 2014			2,242,846			$	0.7				3.8			$	-
	The following table presents information related to stock warrants at March 31, 2014:
					Warrants Outstanding								Warrants Exercisable
	Range of Exercise Price				Weighted Average Exercise Price				Outstanding Number of Warrants				Weighted Average Exercise Price				Weighted Average Remaining Life In Years		Exercisable Number of Warrants
	$	0.25 - $0.35			$	0.27				1,900,000			$	0.27				4.1		1,900,000
	$	0.36 - $3.00				2.91				562,846				2.91				2.4		312,846
	$	3.01 - $4.95				4.95				30,000				4.95				3.5		30,000
	$	0.25 - $4.95			$	0.92				2,492,846			$	0.7				3.8		2,242,846
	Services Contributed
	Effective January 1, 2013, an executive officer of the Company waived payment for services contributed. As a result, the Company imputed the value of the services contributed based on a compensation rate previously approved by the Compensation Committee and recorded salary expense of $87,500 for each of the three month periods ended March 31, 2014 and 2013, with a corresponding credit to stockholders’ deficiency.

Commitments_and_Contingent_Lia

Commitments and Contingent Liabilities	3 Months Ended
	Mar. 31, 2014
Commitments And Contingent Liabilities	'
Note 7 - Commitments and Contingent Liabilities	'
	Operating Leases
	The Company is a party to a lease agreement for approximately 62,000 square feet of office and storage space with an entity.  The monthly lease rate is $10,671 for years 2014 and 2015 and $11,975 in year 2016.  The Company accounts for rent expense using the straight line method of accounting, deferring the difference between actual rent due and the straight line amount. The lease expires on January 1, 2017. Deferred rent payable of $43,704 and $46,254 as of March 31, 2014 and December 31, 2013, respectively, has been included in accrued expenses and other current liabilities on the condensed consolidated balance sheets.
	On June 7, 2013, Pagosa signed a three year lease for $1,000 per month to house an office, pharmacy as well as inventory and is located in Lawrenceburg, IN.  On July 8, 2013, the parties agreed to extend the lease for two additional years, such that the new termination date is now June 7, 2018.  On January 14, 2014, the Company closed Pagosa Health and vacated the Lawrenceburg facility. The Company is currently in discussions with the Landlord regarding termination of the lease related to the building.   The impact of the lease termination was de minimus to the condensed consolidated financial statements as of March 31, 2014.
	Future minimum payments, by year and in the aggregate, under operating leases as of March 31, 2014 are as follows:
	For years ending December 31,	Amount
	2014	$	96,037
	2015	$	128,049
	2016	$	143,700
	Total future minimum lease payments	$	367,786
	During the three months ended March 31, 2014 and 2013, the Company recorded aggregate rent expense of $49,229 and $45,719, respectively.
	Litigation
	In the ordinary course of business, we may become subject to lawsuits and other claims and proceedings that might arise from litigation matters or regulatory audits. Such matters are subject to uncertainty and outcomes are often not predictable with assurance. Our management does not presently expect that any such matters will have a material adverse effect on the Company’s condensed consolidated financial condition or condensed consolidated results of operations. We are not currently involved in any pending or threatened material litigation or other material legal proceedings nor have we been made aware of any penalties from regulatory audits, except as described below.
	On February 9, 2012, two of our former stockholders, Rock Castle Holdings, LLC and Jason Smith (collectively “Plaintiffs”), filed suit against us in the Hamilton County, Ohio Court of Common Pleas, alleging that we had breached the terms of certain incentive options we granted to the Plaintiffs in connection with our now-terminated oral consulting arrangements with the Plaintiffs, by among other things, refusing Plaintiffs’ purported exercise of options to purchase 233,332 shares of our Common Stock at an exercise price of $2.00 per share in December 2011.  Plaintiffs have requested that, among other things, the court require us to permit the exercise of the 233,332 options.  Plaintiffs have also provided an expert report indicating damages of $2.086 million. Also named as defendants were two individuals, Michael Peppel and Gary Singer, whom Plaintiffs claim acted as agents for us in connection with our purchase of shares of our Common Stock from Plaintiffs in September 2011.  On July 19, 2012, the Company and Mr. Peppel filed an answer and counterclaim for breach of contract, alleging that Plaintiffs breached consulting agreements with the Company and undertook a series of actions that damaged and hurt the Company.  On July 24, 2012, the Company filed a complaint against Dennis Smith for breach of contract in the Hamilton County, Ohio Court of Common Pleas, which action was consolidated with the earlier case.  Plaintiffs filed an answer in response to the counterclaim, and Dennis Smith filed an answer in response to the Company’s complaint.  On April 26, 2013, Plaintiffs dismissed Mr. Singer from the lawsuit.    On March 24, 2014, all parties filed motions for summary judgment: (i) the Company and Mr. Peppel moved for summary judgment on all claims asserted by Plaintiffs, (ii) Dennis B. Smith and Counterclaim Defendants and Plaintiffs moved for summary judgment on the Company’s claims for breach of contract, and (iii) Plaintiffs moved for partial summary judgment on their claim for declaratory relief that the Company breached the terms of a stock option agreement. Trial of the case is currently scheduled for November  2014.  We deny all of the Plaintiffs’ claims and intend to contest this matter vigorously.
	The Company was a party to a putative stockholder derivative action was filed in the Court of Chancery of the State of Delaware on May 7, 2013 against certain directors and our chief executive officer and against us, as a nominal defendant.   On January 8, 2014, in a stipulation and order of dismissal, the action was dismissed with prejudice to plaintiff, with each party bearing its own attorneys' fees and costs.
	On May 15, 2013, a former consultant filed suit in Boone County, Kentucky Circuit Court alleging breach of contract and unjust enrichment for unpaid consulting fees and expenses of approximately $55,000.  We filed an answer to the complaint on July 22, 2013 and intend to vigorously defend ourselves against the allegations.  The trial of the case has been set for September 2014.

Concentrations

Concentrations	3 Months Ended
	Mar. 31, 2014
Concentrations	'
Note 8 - Concentrations	'
	During the three months ended March 31, 2014, two vendors represented 57% and 16% of total inventory purchases. During the three months ended March 31, 2013, two vendors represented 30% and 11% of total inventory purchases, respectively.

Related_Party_Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2014
Related Party Transactions	'
Note 9 - Related Party Transactions	'
	Between June 2009 and April 2012, an employee who is the son of the managing member of a limited liability company that beneficially owns over 5% of the Company’s Common Stock received advances from the Company in various forms which totaled $391,469 including interest.  Principal repayments towards the outstanding advances aggregating $235,000 have been made through March 31, 2014.  In April 2012, this employee voluntarily resigned from the Company. The individual agreed to repay the remaining balance with interest based on prime rate on the first business day of the calendar quarter. The amount has been included in Stockholders’ Deficiency as the Company has determined to exercise its rights through a pledge agreement for 42,860 shares as collateral.  At March 31, 2014 and December 31, 2013, the Company estimated the value of the collateral at $10,715 and $9,001, respectively.

Subsequent_Events

Subsequent Events	3 Months Ended
	Mar. 31, 2014
Subsequent Events	'
Note 10 - Subsequent Events	'
	The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the condensed consolidated financial statements, except as disclosed.
	Notes Payable
	On April 30, 2014, the Company received an additional $50,000 from a lender, which brought the face value of the Note to $750,000 pursuant to an Amended and Restated Promissory Note (the “April 2014 Note”), effective April 29, 2014, which supersedes the Note with the same Lender. The April 2014 Note contains financial covenants which require the Company to meet certain minimum targets for earnings before interest, taxes and non-cash expenses, including depreciation, amortization and stock-based compensation (“EBITDAS”) for the calendar quarters and years ended between June 30, 2014 and December 31, 2014. The remainder of the material April 2014 Note terms are unchanged from the Note, including the March 1, 2015 maturity date.  In consideration of the Lender providing additional funds and entering into the April 2014 Note, the Company granted the Lender a five-year warrant to purchase 75,000 shares of Common Stock at an exercise price of $0.35 per share. The warrant contains customary anti-dilution provisions. The warrant had a relative fair value of $14,900 which was set up as debt discount and will be amortized using the effective interest method over the term of the April 2014 Note.  Including the value of warrants issued in connection with the April Note, the Note had an effective interest rate of 40% per annum.
	Executive Compensation
	On April 28, 2014, the Compensation Committee approved the payment of an annual salary of $150,000 to the Company’s Chief Executive Officer, effective May 1, 2014.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2014
Summary Of Significant Accounting Policies Policies	'
Principles of Consolidation	'
	The condensed consolidated financial statements include the accounts of HealthWarehouse.com, Inc., Hwareh.com, Inc., Hocks.com, Inc., ION Holding NV, ION Belgium NV and Pagosa, its wholly-owned subsidiaries. ION Holding NV and ION Belgium NV are inactive subsidiaries. All material inter-company balances and transactions have been eliminated in consolidation.
	On June 4, 2013, the Company formed a wholly-owned subsidiary called Pagosa Health LLC (“Pagosa”).  On January 14, 2014, the Company closed Pagosa and decided to focus on its core consumer prescription business. Pagosa had a de minimis impact on the Company’s operations or the results for the three months ended March 31, 2014.
Use of Estimates	'
	The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.  The Company’s significant estimates include reserves related to accounts receivable and inventory, the recoverability and useful lives of long-lived assets, the valuation allowance related to deferred tax assets, the valuation of equity instruments and debt discounts.
Net Loss Per Share of Common Stock	'
	Basic net loss per share is computed by dividing net loss attributable to Common Stockholders by the weighted average number of common shares outstanding during the period.  Diluted net loss per share reflects the potential dilution that could occur if securities or other instruments to issue Common Stock were exercised or converted into Common Stock.  Potentially dilutive securities are excluded from the computation of diluted net loss per share if their inclusion would be anti-dilutive and consist of the following:
		March 31,
		2014		2013
	Options		2,514,150		2,451,483
	Warrants		2,492,846		6,047,119
	Series B Convertible Preferred Stock		3,714,445		3,407,313
	Total potentially dilutive shares		8,721,441		11,905,915
Recently Issued Accounting Pronouncements	'
	The Company has determined there are no new accounting standards that are expected to have a material impact on the Company's condensed consolidated financial statements.

Summary_of_Significant_Account2

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2014
Summary Of Significant Accounting Policies Tables	'
Schedule of Potentially Dilutive Securities	'
	Potentially dilutive securities are excluded from the computation of diluted net loss per share if their inclusion would be anti-dilutive and consist of the following:
		March 31,
		2014		2013
	Options		2,514,150		2,451,483
	Warrants		2,492,846		6,047,119
	Series B Convertible Preferred Stock		3,714,445		3,407,313
	Total potentially dilutive shares		8,721,441		11,905,915

Accrued_Expenses_and_Other_Cur1

Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2014
Accrued Expenses And Other Current Liabilities Tables	'
Accrued expenses and other current liabilities	'
	Accrued expenses and other current liabilities consisted of the following:
		March 31,		December 31,
		2014		2013
	Deferred Rent	$	43,704	$	46,254
	Advertising		75,000		75,000
	Salaries and Benefits		178,393		132,048
	Customer Payables		19,697		39,618
	Dividend Payable		74,729		279,380
	Accrued Interest		46,429		45,616
	Other		3,622		3,136
	Total	$	441,574	$	621,052

Stockholders_Deficiency_Tables

Stockholders' Deficiency (Tables)	3 Months Ended
	Mar. 31, 2014
Stockholders Deficiency Tables	'
Summary of Stock Option Activity	'
	A summary of the stock option activity during the three months ended March 31, 2014 is presented below:
											Weighted
							Weighted				Average
							Average				Remaining
			Number of				Exercise				Life				Intrinsic
			Options				Price				In Years				Value
	Outstanding, January 1, 2014			2,543,150			$	2.37
	Granted			-				-
	Exercised			-				-
	Forfeited			(29,000	)			3.22
	Outstanding, March 31, 2014			2,514,150			$	2.36				5.7			$	-
	Exercisable, March 31, 2014			1,398,475			$	2.78				4.1			$	-
Summary of Stock Option Outstanding and Exercisable	'
	The following table presents information related to stock options at March 31, 2014:
					Options Outstanding								Options Exercisable
	Range of Exercise Price				Weighted Average Exercise Price				Outstanding Number of Options				Weighted Average Exercise Price				Weighted Average Remaining Life In Years		Exercisable Number of Options
	$	0.30 - $2.20			$	1.11				1,339,400			$	1.58				2.6		573,725
	$	2.21 - $3.80				3.23				757,750				2.95				3.8		507,750
	$	3.81 - $6.99				4.79				417,000				4.66				7.5		317,000
					$	2.36				2,514,150			$	2.78				4.1		1,398,475
Schedule of Stock Warrants Granted	'
	In applying the Black-Scholes option pricing model to stock warrants, the Company used the following weighted average assumptions:
				March 31,
				2014		2013
	Risk free interest rate			1.74%		0.88%
	Dividend yield			0.00%		0.00%
	Expected volatility			171.00%		164.30%
	Expected life in years			5		5
Summary of Stock Warrant Activity	'
	A summary of the stock warrant activity during the three months ended March 31, 2014 is presented below:
							Weighted				Average
							Average				Remaining
			Number of				Exercise				Life				Intrinsic
			Warrants				Price				In Years				Value
	Outstanding, January 1, 2014			2,342,846			$	0.96
	Granted			150,000			$	0.35
	Exercised			-			$	-
	Forfeited			-				-
	Outstanding, March 31, 2014			2,492,846			$	0.92				3.7			$	-
	Exercisable, March 31, 2014			2,242,846			$	0.7				3.8			$	-
Summary of Stock Warrants Outstanding and Exercisable	'
	The following table presents information related to stock warrants at March 31, 2014:
					Warrants Outstanding								Warrants Exercisable
	Range of Exercise Price				Weighted Average Exercise Price				Outstanding Number of Warrants				Weighted Average Exercise Price				Weighted Average Remaining Life In Years		Exercisable Number of Warrants
	$	0.25 - $0.35			$	0.27				1,900,000			$	0.27				4.1		1,900,000
	$	0.36 - $3.00				2.91				562,846				2.91				2.4		312,846
	$	3.01 - $4.95				4.95				30,000				4.95				3.5		30,000
	$	0.25 - $4.95			$	0.92				2,492,846			$	0.7				3.8		2,242,846

Commitments_and_Contingent_Lia1

Commitments and Contingent Liabilities (Tables)	3 Months Ended
	Mar. 31, 2014
Commitments And Contingent Liabilities Tables	'
Summary of Future minimum payments under operating leases	'
	Future minimum payments, by year and in the aggregate, under operating leases as of March 31, 2014 are as follows:
	For years ending December 31,	Amount
	2014	$	96,037
	2015	$	128,049
	2016	$	143,700
	Total future minimum lease payments	$	367,786

Going_Concern_and_Managements_1

Going Concern and Management's Liquidity Plans (Details Narrative) (USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Going Concern And Managements Liquidity Plans Details Narrative	'	'	'
Working Capital Deficiency	$4,727,480	'	'
Accumulated deficit	28,511,039	'	28,130,668
Net Losses	305,641	4,078,366	5,489,892
Net Cash Used in Operating Activities	59,918	457,373	1,024,781
Raised additional debt financing	$50,000	'	'

Summary_of_Significant_Account3

Summary of Significant Accounting Policies (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Summary Of Significant Accounting Policies Details	'	'
Options	$2,514,150	$2,451,483
Warrants	2,492,846	6,047,119
Series B Convertible Preferred Stock	3,714,445	3,407,313
Total potentially dilutive shares	$8,721,441	$11,905,915

Accrued_Expenses_and_Other_Cur2

Accrued Expenses and Other Current Liabilities (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Accrued Expenses And Other Current Liabilities Details	'	'
Deferred rent	$43,704	$46,254
Advertising	75,000	75,000
Salaries and benefits	178,393	132,048
Customer payables	19,697	39,618
Dividends payable	74,729	279,380
Accrued interest	46,429	45,616
Other	3,622	3,136
Total	$441,574	$621,052

Notes_Payable_Details_Narrativ

Notes Payable (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Amortization of debt discount	$54,035	$44,363
Loan Agreement [Member]	'	'
Face amount of loan	700,000	'
Current borrowed amount of loan	100,000	'
Note bears interest rate	7.50%	'
Aggregate number of Warrants Issued	1,050,000	'
Warrants issued Exercise Price	$0.35	'
Warrants issued	150,000	'
Fair value related to warrants	392,500	'
Fair value related to warrants as debt discount	26,000	'
Debt discount as interest expense, amortized	49,435	'
Debt discount as interest expense, unamortized	$212,830	'

Stockholders_Deficiency_Detail

Stockholders' Deficiency (Details) (USD $)	3 Months Ended
	Mar. 31, 2014
Number of options, outstanding	'
Outstanding, beginning of period (in shares)	2,543,150
Granted	'
Exercised	'
Forfeited	-29,000
Outstanding, end of period (in shares)	2,514,150
Exercisable, March 31, 2014	1,398,475
Options, weighted average exercise price	'
Outstanding, beginning of period (in dollars per share)	$2.37
Granted	'
Exercised	'
Forfeited	$3.22
Outstanding, end of period (in dollars per share)	$2.36
Exercisable, March 31, 2014	$2.78
Weighted Average Remaining Life In Years	'
Weighted Average Remaining Life (in years) Outstanding	'5 years 8 months 12 days
Weighted Average Remaining Life (in years) Exercisable	'4 years 1 month 6 days

Stockholders_Deficiency_Detail1

Stockholders' Deficiency (Details 1) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Outstanding Number of Options	2,514,150	2,543,150
Weighted Average Remaining Years of Contractual Life	'4 years 1 month 6 days	'
Weighted Average Exercise Price Outstanding	$2.36	$2.37
Exercisable Number of Options	1,398,475	'
Weighted Average Exercise Price Exercisable	$2.78	'
0.30 - $2.20 [Member]	'	'
Outstanding Number of Options	1,339,400	'
Weighted Average Remaining Years of Contractual Life	'2 years 7 months 6 days	'
Weighted Average Exercise Price Outstanding	$1.11	'
Exercisable Number of Options	573,725	'
Weighted Average Exercise Price Exercisable	$1.58	'
2.21 - $3.80 [Member]	'	'
Outstanding Number of Options	757,750	'
Weighted Average Remaining Years of Contractual Life	'3 years 9 months 18 days	'
Weighted Average Exercise Price Outstanding	$3.23	'
Exercisable Number of Options	507,750	'
Weighted Average Exercise Price Exercisable	$2.95	'
3.81 - $6.99 [Member]	'	'
Outstanding Number of Options	417,000	'
Weighted Average Remaining Years of Contractual Life	'7 years 6 months	'
Weighted Average Exercise Price Outstanding	$4.79	'
Exercisable Number of Options	317,000	'
Weighted Average Exercise Price Exercisable	$4.66	'

Stockholders_Deficiency_Detail2

Stockholders' Deficiency (Details 2)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Stockholders Deficiency Details 2	'	'
Risk free interest rate	1.74%	0.88%
Dividend yield	0.00%	0.00%
Expected volatility	171.00%	164.30%
Expected life in years	'5 years	'5 years

Stockholders_Deficiency_Detail3

Stockholders' Deficiency (Details 3) (USD $)	3 Months Ended
	Mar. 31, 2014
Number of warrants, outstanding	'
Outstanding, beginning of period (in shares)	2,342,846
Granted	150,000
Exercised	'
Forfeited	'
Exercisable, March 31, 2014	2,242,846
Warrants, weighted average exercise price	'
Outstanding, beginning of period (in dollars per share)	$0.96
Granted	$0.35
Exercised	'
Forfeited	'
Exercisable, March 31, 2014	$0.70
Weighted Average Remaining Life In Years	'
Weighted Average Remaining Life (in years) Outstanding	'3 years 8 months 12 days
Weighted Average Remaining Life (in years) Exercisable	'3 years 9 months 18 days
Aggregate Intrinsic Value	'
Aggregate Intrinsic Value Outstanding	'
Aggregate Intrinsic Value Exercisable	'

Stockholders_Deficiency_Detail4

Stockholders' Deficiency (Details 4) (USD $)	Mar. 31, 2014
$0.25 - $0.35 [Member]	'
Outstanding Number of Warrants	1,900,000
Weighted Average Remaining Contractual Term	'4 years 1 month 6 days
Weighted Average Exercise Price Outstanding	$0.27
Exercisable Number of Warrants	1,900,000
Weighted Average Exercise Price Exercisable	$0.27
$0.36 - $3.00 [Member]	'
Outstanding Number of Warrants	562,846
Weighted Average Remaining Contractual Term	'2 years 4 months 24 days
Weighted Average Exercise Price Outstanding	$2.91
Exercisable Number of Warrants	312,846
Weighted Average Exercise Price Exercisable	$2.91
$3.01 - $4.95 [Member]	'
Outstanding Number of Warrants	30,000
Weighted Average Remaining Contractual Term	'3 years 6 months
Weighted Average Exercise Price Outstanding	$4.95
Exercisable Number of Warrants	30,000
Weighted Average Exercise Price Exercisable	$4.95
0.25 - $4.95 [Member]	'
Outstanding Number of Warrants	2,492,846
Weighted Average Remaining Contractual Term	'3 years 9 months 18 days
Weighted Average Exercise Price Outstanding	$0.92
Exercisable Number of Warrants	2,242,846
Weighted Average Exercise Price Exercisable	$0.70

Stockholders_Deficiency_Detail5

Stockholders' Deficiency (Details Narrative) (USD $)	3 Months Ended					12 Months Ended	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
			Stock Warrants [Member]	Stock Warrants [Member]	Series B Preferred Stock [Member]	Series B Preferred Stock [Member]	Stock Option [Member]	Stock Option [Member]
Preferred Stock Contractual Dividends	'	'	'	'	74,730	279,380	'	'
Weighted Average Fair Value	'	'	$0.23	$1.38	'	'	'	'
Selling, General And Administrative Expenses	'	'	$264	$504,777	'	'	$151,853	$312,444
Stock-Based Compensation Expense related to stock options, unamortized	'	'	'	'	'	'	1,476,372	'
Stock-Based Compensation Expense, amortized	'	'	3,685	'	'	'	584,803	'
Stock-based compensation expense warrants. unamortized	'	'	580,525	'	'	'	'	'
Weighted Average Remaining Period	'	'	'1 year 6 months	'	'	'	'1 year 6 months	'
Performance based option vesting	'	'	576,840	'	'	'	891,569	'
Salary expense	$87,500	$87,500	'	'	'	'	'	'

Commitments_and_Contingent_Lia2

Commitments and Contingent Liabilities (Details) (USD $)	Mar. 31, 2014
Commitments And Contingent Liabilities Details	'
2014	$96,037
2015	128,049
2016	143,700
Total future minimum lease payments	$367,786

Commitments_and_Contingent_Lia3

Commitments and Contingent Liabilities (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Commitments And Contingent Liabilities Details Narrative	'	'	'
Monthly lease rate in 2014	$10,671	'	'
Monthly lease rate in 2015	10,671	'	'
Monthly lease rate in 2016	11,975	'	'
Lease expires date	1-Jan-17	'	'
Deferred rent payable	43,704	'	46,254
Rent Expense	$49,229	$45,719	'

Concentrations_Details_Narrati

Concentrations (Details Narrative)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Vendor 1 [Member]	'	'
Concentration Percentage	57.00%	30.00%
Vendor 2 [Member]	'	'
Concentration Percentage	16.00%	11.00%

Related_Party_Transactions_Det

Related Party Transactions (Details Narrative) (USD $)	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2014
			Related Party Outstanding [Member]
Principal repayments towards the outstanding advances	'	'	$235,000
Estimated value of collateral	$10,715	$9,001	'