Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 06, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | HealthWarehouse.com, Inc. | |
Entity Central Index Key | 754,813 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
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 | 37,570,383 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,015 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash | $ 223,239 | $ 506,019 |
Restricted cash | 120,088 | 195,088 |
Accounts receivable, net of allowance of $47,143 and $47,233 as of June 30, 2015 and December 31, 2014 | 110,707 | 100,886 |
Inventories - finished goods, net | 177,100 | 144,236 |
Prepaid expenses and other current assets | 46,631 | 60,202 |
Total current assets | 677,765 | 1,006,431 |
Property and equipment, net of accumulated depreciation of $747,427 and $692,903 as of June 30, 2015 and December 31, 2014 | 462,300 | 511,286 |
Web development costs, net of accumulated amortization of $107,996 and $70,498 as of June 30, 2015 and December 31, 2014 | 123,029 | 142,541 |
Total assets | 1,263,094 | 1,660,258 |
Current liabilities: | ||
Accounts payable - trade | 2,273,133 | 2,542,938 |
Accounts payable - related parties | 64,314 | 84,314 |
Accrued expenses and other current liabilities | 482,397 | 680,506 |
Deferred revenue | 5,014 | 7,009 |
Current portion of equipment lease payable | 67,032 | 64,101 |
Notes payable and other advances, net of debt discount of $19,900 and $58,367 as of June 30, 2015 and December 31, 2014, respectively | 830,100 | 791,633 |
Note payable and other advances - related parties | 58,095 | 73,095 |
Redeemable preferred stock - Series C; par value $0.001 per share; 10,000 designated Series C: 10,000 issued and outstanding as of June 30, 2015 and December 31, 2014 (aggregate liquidation preference of $1,000,000) | 1,000,000 | 1,000,000 |
Total current liabilities | 4,780,085 | 5,243,596 |
Long term liabilities: | ||
Long term portion of equipment lease payable | 11,951 | 46,143 |
Total liabilities | $ 4,792,036 | $ 5,289,739 |
Preferred stock - par value $0.001 per share; authorized 1,000,000 shares; issued and outstanding as of June 30, 2015 and December 31, 2014 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; 483,512 and 451,879 shares issued and outstanding as of June 30, 2015 and December 31, 2014, respectively (aggregate liquidation preference of $4,729,110 and $4,569,175 as of June 30, 2015 and December 31, 2014, respectively) | $ 483 | $ 452 |
Common stock - par value $0.001 per share; authorized 100,000,000 shares; 38,749,595 shares issued and 37,570,383 shares outstanding as of June 30, 2015 and December 31, 2014 | 38,751 | 38,751 |
Additional paid-in capital | $ 30,504,794 | 29,966,039 |
Employee advances | (2,143) | |
Treasury stock, at cost, 1,179,212 shares as of June 30, 2015 and December 31, 2014 | $ (3,419,715) | (3,419,715) |
Accumulated deficit | (30,653,255) | (30,212,865) |
Total stockholders' deficiency | (3,528,942) | (3,629,481) |
Total liabilities and stockholders' deficiency | $ 1,263,094 | $ 1,660,258 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Accounts receivable, net of allowance | $ 47,143 | $ 47,233 |
Property and equipment, net of accumulated depreciation | 747,427 | 692,903 |
Web development costs, net of accumulated amortization | 107,996 | 70,498 |
Current liabilities: | ||
Current portion of notes payable, net of debt discount | $ 19,900 | $ 58,367 |
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 |
Stockholders' deficiency: | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, authorized | 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 | 483,512 | 451,879 |
Series B Convertible preferred stock, shares outstanding | 483,512 | 451,879 |
Series B Convertible preferred stock, aggregate liquidation preference | $ 4,729,110 | $ 4,569,175 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 38,749,595 | 38,749,595 |
Common stock, shares outstanding | 37,570,383 | 37,570,383 |
Treasury stock, shares | 1,179,212 | 1,179,212 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Consolidated Statements Of Operations | ||||
Net sales | $ 1,870,840 | $ 1,462,454 | $ 3,483,517 | $ 3,179,418 |
Cost of sales | 618,391 | 590,894 | 1,249,554 | 1,322,302 |
Gross profit | 1,252,449 | 871,560 | 2,233,963 | 1,857,116 |
Operating expenses: | ||||
Selling, general and administrative expenses | 1,286,925 | 1,150,985 | 2,394,475 | 2,368,646 |
Loss from operations | (34,476) | (279,425) | (160,512) | (511,530) |
Other expense: | ||||
Interest expense | (45,205) | (85,617) | (119,957) | (159,153) |
Total other expense | (45,205) | (85,617) | (119,957) | (159,153) |
Net loss | (79,681) | (365,042) | (280,469) | (670,683) |
Preferred stock: | ||||
Series B convertible contractual dividends | (79,961) | (74,729) | (159,922) | (149,459) |
Net loss attributable to common stockholders | $ (159,642) | $ (439,771) | $ (440,391) | $ (820,142) |
Per share data: | ||||
Net loss - basic and diluted | $ 0 | $ (0.01) | $ (0.01) | $ (0.03) |
Series B convertible contractual dividends | 0 | 0 | 0 | (0.01) |
Net loss attributable to common stockholders - basic and diluted | $ 0 | $ (0.01) | $ (0.01) | $ (0.04) |
Weighted average number of common shares outstanding - basic and diluted | 37,570,383 | 26,550,380 | 37,570,383 | 26,548,616 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Cash flows from operating activities | |||||
Net loss | $ (79,681) | $ (365,042) | $ (280,469) | $ (670,683) | $ (1,783,279) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||
Provision for doubtful accounts | (50,036) | ||||
Provision for employee advance reserve | $ 2,143 | 4,715 | |||
Depreciation and amortization | 91,974 | 83,887 | |||
Stock-based compensation | 198,568 | $ 268,263 | |||
Gain on settlement of accounts payable | $ (87,981) | ||||
Imputed value of services contributed | $ 116,667 | ||||
Amortization of debt discount | $ 79,767 | 117,901 | |||
Changes in operating assets and liabilities: | |||||
Accounts receivable | (9,821) | 269,361 | |||
Inventories - finished goods | (32,864) | 105,634 | |||
Prepaid expenses and other current assets | 13,571 | 29,160 | |||
Accounts payable - trade | (181,823) | (329,826) | |||
Accounts payable - related parties | (20,000) | (35,017) | |||
Accrued expenses and other current liabilities | (59,113) | 69,104 | |||
Deferred revenue | (1,995) | (58,306) | |||
Net cash used in operating activities | (288,043) | $ (79,176) | (875,769) | ||
Cash flows from investing activities | |||||
Change in restricted cash | 75,000 | ||||
Capital expenditures | (5,539) | ||||
Website development costs | (17,937) | $ (67,785) | |||
Net cash provided by (used in) investing activities | 51,524 | (67,785) | |||
Cash flows from financing activities | |||||
Principal payments on equipment leases payable | $ (31,261) | (27,000) | |||
Proceeds from issuance of notes payable | $ 150,000 | ||||
Repayment of notes payable and other advances - related parties | $ (15,000) | ||||
Net cash (used in) provided by financing activities | (46,261) | $ 123,000 | |||
Net decrease in cash | (282,780) | (23,961) | |||
Cash - beginning of period | 506,019 | 67,744 | 67,744 | ||
Cash - end of period | 223,239 | $ 43,783 | 223,239 | 43,783 | $ 506,019 |
Cash paid for: | |||||
Interest | $ 38,900 | 44,362 | |||
Taxes | 89 | ||||
Non-cash investing and financing activities: | |||||
Issuance of Series B preferred stock for settlement of accrued dividends | $ 298,918 | 279,380 | |||
Warrants issued as debt discount in connection with notes payable | $ 41,300 | 41,300 | 36,000 | ||
Accrual of contractual dividends on Series B convertible preferred stock | $ 159,922 | $ 149,459 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
1. Organization and Basis of Presentation | HealthWarehouse.com, Inc. (HEWA or the Company), a Delaware company incorporated in 1998, is Americas Trusted Online Pharmacy, licensed in 50 states to focus on the out-of-pocket prescription drug market. The Company is Verified Internet Pharmacy Practice Site (VIPPS) accredited by the National Association of Boards of Pharmacy (NABP). The Company markets a complete range of generic, brand name, and pet prescription medications as well as over-the-counter ("OTC") medications and products. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information. Accordingly, they do not include all of the information and disclosures required by U.S. 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 June 30, 2015 and for the six months ended June 30, 2015 and 2014. The results of operations for the six months ended June 30, 2015 are not necessarily indicative of the operating results for the full year ending December 31, 2015 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, 2014 and for the year then ended, which were filed with the Securities and Exchange Commission on Form 10-K on March 30, 2015. |
Going Concern and Management's
Going Concern and Management's Liquidity Plans | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
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 June 30, 2015, the Company had a working capital deficiency of $4,102,320 and an accumulated deficit of $30,653,255. During the six months ended June 30, 2015 and the year ended December 31, 2014, the Company incurred net losses of $280,469 and $1,783,279, respectively and used cash in operating activities of $288,043 and $875,769, respectively. These conditions raise substantial doubt about the Companys ability to continue as a going concern. Subsequent to June 30, 2015, the Company continues to incur net losses, use cash in operating activities and experience cash and working capital constraints. 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 U.S. 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 Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
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 and ION Belgium NV, 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 to focus on its core consumer prescription business. Pagosa was dissolved in July 2014. Use of Estimates The preparation of condensed consolidated financial statements in conformity with 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 Companys 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 Earnings (Loss) Per Share of Common Stock Basic net earnings (loss) per share is computed by dividing net earnings (loss) attributable to Common Stockholders by the weighted average number of common shares outstanding during the period. Diluted net earnings (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 earnings (loss) per share if their inclusion would be anti-dilutive and consist of the following: June 30, 2015 2014 Options 5,008,830 2,060,034 Warrants 9,976,474 2,567,846 Series B Convertible Preferred Stock 5,507,202 3,714,445 Total potentially dilutive shares 20,492,506 8,342,325 Recently Issued Accounting Pronouncements In April 2015, the FASB issued ASU No. 2015-03 (ASU 2015-03), Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs The Company has determined there are no other new accounting standards that are expected to have a material impact on the Company's condensed consolidated financial statements. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
4. Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: June 30, December 31, 2015 2014 Deferred Rent $ 30,952 $ 36,053 Advertising 76,639 109,930 Salaries and Benefits 68,525 82,222 Customer Payables 264 635 Dividend Payable 159,922 298,918 Accrued Interest 50,494 48,868 Accrued Rent 48,545 46,604 Other 47,056 57,276 Total $ 482,397 $ 680,506 |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
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 $750,000 from the Lender (the Loan). The Loan is evidenced by a promissory note (the Senior Note) in the face amount of $750,000 (as amended). Effective March 1, 2015, near the original maturity date, the Lender agreed to extend the maturity date of the Senior Note from March 1, 2015 to September 1, 2015 and agreed to extend the maturity date for an additional six months to March 1, 2016 if the Company meets certain financial requirements. The Senior 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 June 30, 2015). 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 September 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 Senior 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). The Company granted the Lender a first, priority security interest in all of the Companys assets, in order to secure the Companys obligation to repay the Loan, including a Deposit Account Control Agreement, which grants the Lender a security interest in certain bank accounts. In connection with the extension of the maturity date of the Senior Note, the Company granted the Lender five-year warrants to purchase 500,000 shares of Common Stock at an exercise price of $0.10 per share. The warrants had a fair value of $41,300 using the Black-Scholes model (see Note 6) which was established as debt discount during the six months ended June 30, 2015 and will be amortized using the effective interest method over the remaining term of the Senior Note. Including the value of warrants issued in connection with extension of the maturity date of the Senior Note, the Note had an effective interest rate of 19% per annum. The Company recorded amortization of debt discount associated with notes payable of $25,250 and $79,767 during the three and six months ended June 30, 2015, respectively, and $63,865 and $117,901 for the three and six months ended June 30, 2014, respectively. |
Stockholders' Deficiency
Stockholders' Deficiency | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
6. Stockholders' Deficiency | Preferred Stock As of June 30, 2015 and December 31, 2014, the Company had accrued cumulative contractual dividends of $159,922 and $298,918, respectively, related to the Series B Preferred Stock. On January 1, 2015 and 2014, the Company issued 31,633 and 29,564 shares of Series B convertible preferred stock valued at approximately $299,000 and $279,000, 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 Valuation In applying the Black-Scholes option pricing model to stock options, the Company used the following weighted average assumptions: For The Three Months Ended For The Six Months Ended June 30, June 30, 2015 2014 2015 2014 Risk free interest rate 1.35% to 1.85% n/a 1.35% to 1.85% n/a Dividend yield 0.00% n/a 0.00% n/a Expected volatility 195.0% n/a 195.0% n/a Expected life in years 5.5 to 10.0 n/a 5.5 to 10.0 n/a Grants The weighted average fair value of the stock options granted during the three and six months ended June 30, 2015 was $0.09 per share. There were no stock options granted during the three and six months ended June 30, 2014. On April 3, 2015, the Company granted options to employees of the Company to purchase an aggregate of 922,223 shares of common stock under the 2014 Equity Incentive Plan (the 2014 Plan) at an exercise price of $0.09 per share for an aggregate grant date value of $81,419. The options have a vesting period ranging from immediate to three years and have a term of ten years. On April 3, 2015, the Company granted options to consultants of the Company to purchase an aggregate of 149,861 shares of common stock under the 2014 Plan at an exercise price of $0.09 per share for an aggregate grant date value of $13,462. The options vested on the grant date and have a term of ten years. On April 7, 2015, the Company granted options to directors of the Company to purchase an aggregate of 102,189 shares of common stock under the 2014 Plan at an exercise price of between $0.09 per share for an aggregate grant date value of $9,000. The options vested on the grant date and have a term of ten years. The options were granted as part of director compensation approved by the Compensation Committee. 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 $107,500 and $186,289 for the three and six months ended June 30, 2015, respectively, and $106,352 and $268,851 for the three and six months ended June 30, 2014, respectively. Option forfeitures are estimated at the time of valuation and reduce expense ratably over the vesting period. This estimate will be adjusted periodically based on the extent to which actual option forfeitures differ, or are expected to differ, from the previous estimate, when it is material. The Company estimated forfeitures related to option grants at an annual rate of 6% for options granted during the six months ended June 30, 2015. As of June 30, 2015, stock-based compensation expense related to stock options of $1,017,408 remains unamortized, including $125,839 which is being amortized over the weighted average remaining period of 1.2 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 six months ended June 30, 2015 is presented below: Number of Options Weighted Average Exercise Price Weighted Average Remaining Life In Years Aggregate Intrinsic Value Outstanding, January 1, 2015 3,944,557 $ 1.27 Granted 1,174,273 0.09 Exercised - - Forfeited (110,000 ) 0.51 Outstanding, June 30, 2015 5,008,830 $ 1.01 7.5 $ 106,542 Exercisable, June 30, 2015 4,017,995 $ 0.96 7.9 $ 85,542 The following table presents information related to stock options at June 30, 2015: 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 $0.09 - $2.20 $ 0.27 3,936,080 $ 0.26 8.9 3,201,245 $2.21 - $3.80 3.23 757,750 2.95 2.5 507,750 $3.81 - $6.99 4.88 315,000 4.88 6.6 309,000 $ 1.01 5,008,830 $ 0.96 7.9 4,017,995 Warrants Valuation In applying the Black-Scholes option pricing model to stock warrants, the Company used the following weighted average assumptions: For The Three Months Ended For The Six Months Ended June 30, June 30, 2015 2014 2015 2014 Risk free interest rate 1.26% to 1.68% 1.69% to 2.33% 1.26% to 1.75% 1.69% to 2.52% Dividend yield 0.00% 0.00% 0.00% 0.00% Expected volatility 195.0% to 197.0% 171.0% to 183.0% 195.0% to 197.0% 171.0% to 183.0% Expected life in years 5.00 to 7.30 5.00 to 8.30 5.00 to 7.50 5.00 to 8.50 Grants The weighted average fair value of the stock warrants granted during the three and six months ended June 30, 2015 was $0.09 and $0.08 per share, respectively. The weighted average fair value of the stock warrants granted during the three and six months ended June 30, 2014, was $0.17 and $0.21 per share, respectively. On April 3, 2015, the Company granted warrants to a former employee of the Company to purchase an aggregate of 137,430 shares of common stock at an exercise price of $0.09 per share for an aggregate grant date value of $12,018. The warrants have a term of five years. The warrants were issued as repayment for amounts previously accrued. Stock-based compensation expense related to warrants for the three and six months ended June 30, 2015 was recorded in the condensed consolidated statements of operations as a component of selling, general and administrative expenses and totaled $12,063 and $12,279, respectively, and $(852) and $(588) for the three and six months ended June 30, 2014, respectively. 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 six months ended June 30, 2015 is presented below: Number of Warrants Weighted Average Exercise Price Average Remaining Life In Years Aggregate Intrinsic Value Outstanding, January 1, 2015 9,339,044 $ 0.45 Granted 637,430 $ 0.10 Exercised - $ - Forfeited - - Outstanding, June 30, 2015 9,976,474 $ 0.43 3.8 $ 33,246 Exercisable, June 30, 2015 9,716,474 $ 0.36 3.9 $ 33,246 The following table presents information related to stock warrants at June 30, 2015: 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 $0.09 - $0.35 $ 0.27 9,383,628 $ 0.27 3.9 9,383,628 $0.36 - $3.00 2.91 562,846 2.91 1.2 312,846 $3.01 - $4.95 4.95 30,000 4.95 2.3 20,000 $0.09 - $4.95 $ 0.43 9,976,474 $ 0.36 3.9 9,716,474 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
7. Commitments and Contingent Liabilities | Operating Leases The Company is a party to a lease agreement dated June 15, 2011 for approximately 62,000 square feet of office and storage space with an entity. On December 15, 2014, the Company entered into a sublease agreement for 34,106 square feet of warehouse space at the Companys corporate headquarters in Florence, Kentucky. The sublease, which required rent of $9,948 per month, was terminated by the Company on the original expiration date of June 14, 2015. On April 27, 2015, the Company entered in an amendment to the lease agreement which reduced the square feet of office and storage space to approximately 28,500 square feet, effective June 15, 2015. Per the amendment, the monthly lease rate reduced to $7,770 in June 2015, $4,868 for the remainder of 2015 and $5,462 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 Company will amortize the balance of the remaining deferred rent payable related to the original lease over the remaining life of the amended lease term. The lease expires on January 1, 2017. Deferred rent payable of $30,952 and $36,053 as of June 30, 2015 and December 31, 2014, 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 and vacated the Lawrenceburg facility. The Company is currently in discussions with the Landlord regarding termination of the lease related to the building. The present value of the remaining lease payments of $48,545 is reflected as a component of accrued expenses and other liabilities on the condensed consolidated financial statements as of June 30, 2015. Future minimum payments, by year and in the aggregate, under operating leases as of June 30, 2015 are as follows: For years ending December 31, Amount 2015 $ 35,208 2016 77,544 2017 12,000 2018 5,000 Total future minimum lease payments $ 129,752 During the three and six months ended June 30, 2015, the Company recorded aggregate rent expense of $43,273 and $61,615, respectively, and $94,091 and $143,319 during the three and six months ended June 30, 2014, 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 Companys 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. |
Concentrations
Concentrations | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
8. Concentrations | During the three months ended June 30, 2015, two vendors represented 65% and 11% of total inventory purchases, and 69% and 11% of total inventory purchases for the six months ended June 30, 2015. During the three months ended June 30, 2014, two vendors represented 74% and 12% of total inventory purchases, and 64% and 14% of total inventory purchases for the six months ended June 30, 2014. Two vendors represented 40% and 12% of the accounts payable balance as of June 30, 2015 and 36% and 11% as of December 31, 2014. One customer represented 16% and 22% of the accounts receivable balance as of June 30, 2015 and December 31, 2014, respectively. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
9. Related Party Transactions | Effective September 4, 2014, the Company entered into a consulting agreement with a stockholder to provide consulting services related to business development and marketing activities for the Company and other duties as agreed to by management. The Company is required to pay the related party a monthly fee of $10,000 plus expense reimbursement. Subsequent to the effective date, the related party agreed to defer the payment of the monthly fee for a period of four months beginning with the November 4, 2014 payment. The deferred fees will be payable on the earlier of the termination date or the second anniversary of the effective date. The consulting agreement has an initial term of one year and can be automatically renewed for a one year period unless terminated by either party. The Agreement may be terminated by the Company by providing a sixty day notice prior to the first anniversary of the effective date. On July 6, 2015, the Company notified the related party of its intent to terminate the contract effective September 4, 2015. During the three and six months ended June 30, 2015, the Company incurred consulting and other expenses of $50,000 and $80,000, respectively, and paid $40,000 related to the consulting agreement. 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 Companys 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 December 31, 2014, the Company estimated the value of the collateral at $2,143. During the six months ended June 30, 2015, the Company wrote off the value of the collateral to $0. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
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. On July 10, 2015, the Company granted options to directors of the Company to purchase an aggregate of 61,221 shares of common stock under the 2014 Plan at an exercise price of $0.15 per share for an aggregate grant date value of $9,000. The options vested on the grant date and have a term of ten years. The options were granted as part of director compensation approved by the Compensation Committee. Effective July 23, 2015, the Company reached a settlement agreement with a shareholder that holds a note payable in the amount of $42,095, plus accrued interest, with a maturity date of May 31, 2014. The Company has agreed to pay twelve monthly payments of $4,099 on the first of each month starting on August 1, 2015 to fully satisfy its obligations under the note payable. On August 5, 2015, the Company granted options to the President and Chief Executive Officer of the Company to purchase an aggregate of 100,000 shares of common stock under the 2014 Plan at an exercise price of $0.12 per share. The options vested on the grant date and have a term of ten years. The options were granted as compensation approved by the Compensation Committee. On August 5, 2015, the Company granted options to a consultant of the Company to purchase an aggregate of 200,000 shares of common stock under the 2014 Plan at an exercise price of $0.12 per share. The options have a vesting period of three years and have a term of ten years. The options were granted as compensation approved by the Compensation Committee. On August 5, 2015, the Company granted options to employees of the Company to purchase an aggregate of 680,000 shares of common stock under the 2014 Plan at an exercise price of $0.11 per share. The options have a vesting period ranging from immediate to three years and have a term of ten years. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
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 and ION Belgium NV, 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 to focus on its core consumer prescription business. Pagosa was dissolved in July 2014. |
Use of Estimates | The preparation of condensed consolidated financial statements in conformity with 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 Companys 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 Earnings (Loss) Per Share of Common Stock | Basic net earnings (loss) per share is computed by dividing net earnings (loss) attributable to Common Stockholders by the weighted average number of common shares outstanding during the period. Diluted net earnings (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 earnings (loss) per share if their inclusion would be anti-dilutive and consist of the following: June 30, 2015 2014 Options 5,008,830 2,060,034 Warrants 9,976,474 2,567,846 Series B Convertible Preferred Stock 5,507,202 3,714,445 Total potentially dilutive shares 20,492,506 8,342,325 |
Recently Issued Accounting Pronouncements | In April 2015, the FASB issued ASU No. 2015-03 (ASU 2015-03), Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs The Company has determined there are no other new accounting standards that are expected to have a material impact on the Company's condensed consolidated financial statements. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Summary Of Significant Accounting Policies Tables | |
Schedule of Potentially Dilutive Securities | June 30, 2015 2014 Options 5,008,830 2,060,034 Warrants 9,976,474 2,567,846 Series B Convertible Preferred Stock 5,507,202 3,714,445 Total potentially dilutive shares 20,492,506 8,342,325 |
Accrued Expenses and Other Cu18
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accrued Expenses And Other Current Liabilities Tables | |
Accrued expenses and other current liabilities | June 30, December 31, 2015 2014 Deferred Rent $ 30,952 $ 36,053 Advertising 76,639 109,930 Salaries and Benefits 68,525 82,222 Customer Payables 264 635 Dividend Payable 159,922 298,918 Accrued Interest 50,494 48,868 Accrued Rent 48,545 46,604 Other 47,056 57,276 Total $ 482,397 $ 680,506 |
Stockholders' Deficiency (Table
Stockholders' Deficiency (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Stock Option [Member] | |
Schedule of Stock Granted | For The Three Months Ended For The Six Months Ended June 30, June 30, 2015 2014 2015 2014 Risk free interest rate 1.35% to 1.85% n/a 1.35% to 1.85% n/a Dividend yield 0.00% n/a 0.00% n/a Expected volatility 195.0% n/a 195.0% n/a Expected life in years 5.5 to 10.0 n/a 5.5 to 10.0 n/a |
Summary of Stock Activity | Number of Options Weighted Average Exercise Price Weighted Average Remaining Life In Years Aggregate Intrinsic Value Outstanding, January 1, 2015 3,944,557 $ 1.27 Granted 1,174,273 0.09 Exercised - - Forfeited (110,000 ) 0.51 Outstanding, June 30, 2015 5,008,830 $ 1.01 7.5 $ 106,542 Exercisable, June 30, 2015 4,017,995 $ 0.96 7.9 $ 85,542 |
Summary of Stock Outstanding and Exercisable | 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 $0.09 - $2.20 $ 0.27 3,936,080 $ 0.26 8.9 3,201,245 $2.21 - $3.80 3.23 757,750 2.95 2.5 507,750 $3.81 - $6.99 4.88 315,000 4.88 6.6 309,000 $ 1.01 5,008,830 $ 0.96 7.9 4,017,995 |
Warrant [Member] | |
Schedule of Stock Granted | For The Three Months Ended For The Six Months Ended June 30, June 30, 2015 2014 2015 2014 Risk free interest rate 1.26% to 1.68% 1.69% to 2.33% 1.26% to 1.75% 1.69% to 2.52% Dividend yield 0.00% 0.00% 0.00% 0.00% Expected volatility 195.0% to 197.0% 171.0% to 183.0% 195.0% to 197.0% 171.0% to 183.0% Expected life in years 5.00 to 7.30 5.00 to 8.30 5.00 to 7.50 5.00 to 8.50 |
Summary of Stock Activity | Number of Warrants Weighted Average Exercise Price Average Remaining Life In Years Aggregate Intrinsic Value Outstanding, January 1, 2015 9,339,044 $ 0.45 Granted 637,430 $ 0.10 Exercised - $ - Forfeited - - Outstanding, June 30, 2015 9,976,474 $ 0.43 3.8 $ 33,246 Exercisable, June 30, 2015 9,716,474 $ 0.36 3.9 $ 33,246 |
Summary of Stock Outstanding and Exercisable | 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 $0.09 - $0.35 $ 0.27 9,383,628 $ 0.27 3.9 9,383,628 $0.36 - $3.00 2.91 562,846 2.91 1.2 312,846 $3.01 - $4.95 4.95 30,000 4.95 2.3 20,000 $0.09 - $4.95 $ 0.43 9,976,474 $ 0.36 3.9 9,716,474 |
Commitments and Contingent Li20
Commitments and Contingent Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Commitments And Contingent Liabilities Tables | |
Summary of future minimum payments under operating leases | For years ending December 31, Amount 2015 $ 35,208 2016 77,544 2017 12,000 2018 5,000 Total future minimum lease payments $ 129,752 |
Going Concern and Management'21
Going Concern and Management's Liquidity Plans (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Going Concern And Managements Liquidity Plans Details Narrative | |||||
Working Capital Deficiency | $ 4,102,320 | $ 4,102,320 | |||
Accumulated deficit | (30,653,255) | (30,653,255) | $ (30,212,865) | ||
Net Losses | $ (79,681) | $ (365,042) | (280,469) | $ (670,683) | (1,783,279) |
Net Cash Used in Operating Activities | $ (288,043) | $ (79,176) | $ (875,769) |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Details) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Summary Of Significant Accounting Policies Details | ||
Options | $ 5,008,830 | $ 2,060,034 |
Warrants | 9,976,474 | 2,567,846 |
Series B Convertible Preferred Stock | 5,507,202 | 3,714,445 |
Total potentially dilutive shares | $ 20,492,506 | $ 8,342,325 |
Accrued Expenses and Other Cu23
Accrued Expenses and Other Current Liabilities (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Accrued Expenses And Other Current Liabilities Details | ||
Deferred rent | $ 30,952 | $ 36,053 |
Advertising | 76,639 | 109,930 |
Salaries and benefits | 68,525 | 82,222 |
Customer payables | 264 | 635 |
Dividends payable | 159,922 | 298,918 |
Accrued interest | 50,494 | 48,868 |
Accrued Rent | 48,545 | 46,604 |
Other | 47,056 | 57,276 |
Total | $ 482,397 | $ 680,506 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Notes Payable Details Narrative | ||||
Warrants issued as debt discount in connection with notes payable | $ 41,300 | $ 41,300 | $ 36,000 | |
Amortization of the debt discount | $ 25,250 | $ 63,865 | $ 79,767 | $ 117,901 |
Stockholders' Deficiency (Detai
Stockholders' Deficiency (Details) - Stock Option [Member] | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Risk free interest rate | 0.00% | 0.00% | ||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected volatility | 195.00% | 0.00% | 195.00% | 0.00% |
Expected life in years | ||||
Minimum [Member] | ||||
Risk free interest rate | 1.35% | 1.35% | ||
Expected life in years | 5 years 6 months | 5 years 6 months | ||
Maximum [Member] | ||||
Risk free interest rate | 1.85% | 1.85% | ||
Expected life in years | 10 years | 10 years |
Stockholders' Deficiency (Det26
Stockholders' Deficiency (Details 1) - 6 months ended Jun. 30, 2015 - Stock Option [Member] - USD ($) | Total |
Number of Options, outstanding | |
Outstanding, beginning of period (in shares) | 3,944,557 |
Granted | 1,174,273 |
Exercised | |
Forfeited | (110,000) |
Outstanding, end of period (in shares) | 5,008,830 |
Exercisable, June 30, 2015 | 4,017,995 |
Weighted average exercise price | |
Outstanding, beginning of period (in dollars per share) | $ 1.27 |
Granted | $ 0.09 |
Exercised | |
Forfeited | $ 0.51 |
Outstanding, end of period (in dollars per share) | 1.01 |
Exercisable, March 31, 2015 | $ 0.96 |
Weighted Average Remaining Life In Years | |
Weighted Average Remaining Life (in years) Outstanding | 7 years 6 months |
Weighted Average Remaining Life (in years) Exercisable | 7 years 10 months 24 days |
Aggregate Intrinsic Value | |
Aggregate Intrinsic Value Outstanding | $ 106,542 |
Aggregate Intrinsic Value Exercisable, June 30, 2015 | $ 85,542 |
Stockholders' Deficiency (Det27
Stockholders' Deficiency (Details 2) - Stock Option [Member] - $ / shares | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Weighted Average Exercise Price Outstanding | $ 1.01 | $ 1.27 |
Number Outstanding | 5,008,830 | 3,944,557 |
Weighted Average Exercise Price Exercisable | $ 0.96 | |
Weighted Average Remaining Years of Contractual Life | 7 years 10 months 24 days | |
Number Exercisable | 4,017,995 | |
$0.09 - $2.20 | ||
Weighted Average Exercise Price Outstanding | $ 0.27 | |
Number Outstanding | 3,936,080 | |
Weighted Average Exercise Price Exercisable | $ 0.26 | |
Weighted Average Remaining Years of Contractual Life | 8 years 10 months 24 days | |
Number Exercisable | 3,201,245 | |
$2.21 - $3.80 | ||
Weighted Average Exercise Price Outstanding | $ 3.23 | |
Number Outstanding | 757,750 | |
Weighted Average Exercise Price Exercisable | $ 2.95 | |
Weighted Average Remaining Years of Contractual Life | 2 years 6 months | |
Number Exercisable | 507,750 | |
$3.81 - $6.99 | ||
Weighted Average Exercise Price Outstanding | $ 4.88 | |
Number Outstanding | 315,000 | |
Weighted Average Exercise Price Exercisable | $ 4.88 | |
Weighted Average Remaining Years of Contractual Life | 6 years 7 months 6 days | |
Number Exercisable | 309,000 |
Stockholders' Deficiency (Det28
Stockholders' Deficiency (Details 3) - Warrant [Member] | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Minimum [Member] | ||||
Risk free interest rate | 1.26% | 1.69% | 1.26% | 1.69% |
Expected volatility | 195.00% | 171.00% | 195.00% | 171.00% |
Expected life in years | 5 years | 5 years | 5 years | 5 years |
Maximum [Member] | ||||
Risk free interest rate | 1.68% | 2.33% | 1.75% | 2.52% |
Expected volatility | 197.00% | 183.00% | 197.00% | 183.00% |
Expected life in years | 7 years 3 months 18 days | 8 years 3 months 18 days | 7 years 6 months | 8 years 6 months |
Stockholders' Deficiency (Det29
Stockholders' Deficiency (Details 4) - 6 months ended Jun. 30, 2015 - Warrant [Member] - USD ($) | Total |
Number of Warrants, outstanding | |
Outstanding, beginning of period (in shares) | 9,339,044 |
Granted | 637,430 |
Exercised | |
Forfeited | |
Outstanding, end of period (in shares) | 9,976,474 |
Exercisable, June 30, 2015 | 9,716,474 |
Weighted average exercise price | |
Outstanding, beginning of period (in dollars per share) | $ 0.45 |
Granted | $ 0.10 |
Exercised | |
Forfeited | |
Outstanding, end of period (in dollars per share) | $ 0.43 |
Exercisable, March 31, 2015 | $ 0.36 |
Weighted Average Remaining Life In Years | |
Weighted Average Remaining Life (in years) Outstanding | 3 years 9 months 18 days |
Weighted Average Remaining Life (in years) Exercisable | 3 years 10 months 24 days |
Aggregate Intrinsic Value | |
Aggregate Intrinsic Value Outstanding | $ 33,246 |
Aggregate Intrinsic Value Exercisable, June 30, 2015 | $ 33,246 |
Stockholders' Deficiency (Det30
Stockholders' Deficiency (Details 5) - Warrant [Member] - $ / shares | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Weighted Average Exercise Price Outstanding | $ 0.43 | $ 0.45 |
Number Outstanding | 9,976,474 | 9,339,044 |
Weighted Average Exercise Price Exercisable | $ 0.36 | |
Weighted Average Remaining Years of Contractual Life | 3 years 10 months 24 days | |
Number Exercisable | 9,716,474 | |
$0.09 - $0.35 | ||
Weighted Average Exercise Price Outstanding | $ 0.27 | |
Number Outstanding | 9,383,628 | |
Weighted Average Exercise Price Exercisable | $ 0.27 | |
Weighted Average Remaining Years of Contractual Life | 3 years 10 months 24 days | |
Number Exercisable | 9,383,628 | |
$0.36 - $3.00 | ||
Weighted Average Exercise Price Outstanding | $ 2.91 | |
Number Outstanding | 562,846 | |
Weighted Average Exercise Price Exercisable | $ 2.91 | |
Weighted Average Remaining Years of Contractual Life | 1 year 2 months 12 days | |
Number Exercisable | 312,846 | |
$3.01 - $4.95 | ||
Weighted Average Exercise Price Outstanding | $ 4.95 | |
Number Outstanding | 30,000 | |
Weighted Average Exercise Price Exercisable | $ 4.95 | |
Weighted Average Remaining Years of Contractual Life | 2 years 3 months 18 days | |
Number Exercisable | 20,000 |
Stockholders' Deficiency (Det31
Stockholders' Deficiency (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Stock Option [Member] | |||||
Weighted Average Fair Value | $ 0.09 | $ 0 | $ 0.09 | $ 0 | |
Selling, General And Administrative Expenses | $ 107,500 | $ 106,352 | $ 186,289 | $ 268,851 | |
Stock-based compensation expense, unamortized | 1,017,408 | ||||
Stock-Based Compensation Expense, amortized | $ 125,839 | ||||
Weighted Average Remaining Period | 1 year 2 months 12 days | ||||
Performance based option vesting | $ 891,569 | ||||
Warrant [Member] | |||||
Weighted Average Fair Value | $ 0.09 | $ 0.17 | $ 0.08 | $ 0.21 | |
Selling, General And Administrative Expenses | $ 12,063 | $ (852) | $ 12,279 | $ (588) | |
Performance based option vesting | $ 576,840 | ||||
Series B Preferred Stock [Member] | |||||
Preferred Stock Contractual Dividends | 159,922 | 298,918 |
Commitments and Contingent Li32
Commitments and Contingent Liabilities (Details 1) | Jun. 30, 2015USD ($) |
Commitments And Contingent Liabilities Details 1 | |
2,015 | $ 35,208 |
2,016 | 77,544 |
2,017 | 12,000 |
2,018 | 5,000 |
Total future minimum lease payments | $ 129,752 |
Commitments and Contingent Li33
Commitments and Contingent Liabilities (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Commitments And Contingent Liabilities Details Narrative | |||||
Deferred rent payable | $ 30,952 | $ 30,952 | $ 36,053 | ||
Lease payments | 48,545 | ||||
Rent Expense | $ 43,273 | $ 94,091 | $ 61,615 | $ 143,319 |
Concentrations (Details Narrati
Concentrations (Details Narrative) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Vendor 1 [Member] | |||||
Concentration Inventory Purchases Percentage | 65.00% | 74.00% | 69.00% | 64.00% | |
Concentration Accounts Payable Percentage | 40.00% | 40.00% | 36.00% | ||
Vendor 2 [Member] | |||||
Concentration Inventory Purchases Percentage | 11.00% | 12.00% | 11.00% | 14.00% | |
Concentration Accounts Payable Percentage | 12.00% | 12.00% | 11.00% | ||
One customer [Member] | |||||
Concentration Accounts Receivable Percentage | 16.00% | 16.00% | 22.00% |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Related Party Transactions Details Narrative | |||
Consulting and other expenses | $ 50,000 | $ 80,000 | |
Paid for consulting agreement | 40,000 | 40,000 | |
Estimated the value of collateral | $ 0 | $ 0 | $ 2,143 |