HealthWarehouse.com (HEWA) 10-Q 13 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 12, 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	Sep. 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	Q3
Document Fiscal Year Focus	2,015

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash	$ 25,242	$ 506,019
Restricted cash	159,011	195,088
Accounts receivable, net of allowance of $47,143 and $47,233 as of September 30, 2015 and December 31, 2014	79,988	100,886
Inventories - finished goods, net	172,694	144,236
Prepaid expenses and other current assets	92,970	60,202
Total current assets	529,905	1,006,431
Property and equipment, net of accumulated depreciation of $774,359 and $692,903 as of September 30, 2015 and December 31, 2014	435,368	511,286
Web development costs, net of accumulated amortization of $127,247 and $70,498 as of September 30, 2015 and December 31, 2014	103,966	142,541
Total assets	1,069,239	1,660,258
Current liabilities:
Accounts payable - trade	2,269,915	2,542,938
Accounts payable - related parties	40,000	84,314
Accrued expenses and other current liabilities	522,853	680,506
Deferred revenue	1,992	7,009
Current portion of equipment lease payable	62,579	64,101
Notes payable and other advances, net of debt discount of $1,533 and $58,367 as of September 30, 2015 and December 31, 2014, respectively	848,467	791,633
Note payable and other advances - related parties	35,395	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 September 30, 2015 and December 31, 2014 (aggregate liquidation preference of $1,000,000)	1,000,000	1,000,000
Total current liabilities	$ 4,781,201	5,243,596
Long term liabilities:
Long term portion of equipment lease payable		46,143
Total liabilities	$ 4,781,201	$ 5,289,739
Preferred stock - par value $0.001 per share; authorized 1,000,000 shares; issued and outstanding as of September 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 September 30, 2015 and December 31, 2014, respectively (aggregate liquidation preference of $4,809,070 and $4,569,175 as of September 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  September 30, 2015 and December 31, 2014	38,751	38,751
Additional paid-in capital	$ 30,564,339	29,966,039
Employee advances		(2,143)
Treasury stock, at cost, 1,179,212 shares as of September 30, 2015 and December 31, 2014	$ (3,419,715)	(3,419,715)
Accumulated deficit	(30,895,820)	(30,212,865)
Total stockholders' deficiency	(3,711,962)	(3,629,481)
Total liabilities and stockholders' deficiency	$ 1,069,239	$ 1,660,258

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Accounts receivable, net of allowance	$ 47,143	$ 47,233
Property and equipment, net of accumulated depreciation	774,359	692,903
Web development costs, net of accumulated amortization	127,247	70,498
Current liabilities:
Current portion of notes payable, net of debt discount	$ 1,533	$ 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	$ 4,809,070	$ 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		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Consolidated Statements Of Operations
Net sales	$ 1,689,457	$ 1,474,986	$ 5,172,974	$ 4,654,404
Cost of sales	604,153	600,840	1,853,707	1,923,142
Gross profit	1,085,304	874,146	3,319,267	2,731,262
Operating expenses:
Selling, general and administrative expenses	1,211,401	1,317,775	3,605,876	3,686,421
Loss from operations	(126,097)	(443,629)	(286,609)	(955,159)
Other expense:
Interest expense	(36,507)	(86,628)	(156,464)	(245,781)
Total other expense	(36,507)	(86,628)	(156,464)	(245,781)
Net loss	(162,604)	(530,257)	(443,073)	(1,200,940)
Preferred stock:
Series B convertible contractual dividends	(79,960)	(74,730)	(239,882)	(224,189)
Net loss attributable to common stockholders	$ (242,564)	$ (604,987)	$ (682,955)	$ (1,425,129)
Per share data:
Net loss - basic and diluted	$ (0.01)	$ (0.02)	$ (0.01)	$ (0.04)
Series B convertible contractual dividends	$ 0	$ 0	$ (0.01)	$ (0.01)
Series B convertible deemed dividends
Net loss attributable to common stockholders - basic and diluted	$ (0.01)	$ (0.02)	$ (0.02)	$ (0.05)
Weighted average number of common shares outstanding - basic and diluted	37,570,383	29,949,512	37,570,383	27,694,705

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Cash flows from operating activities
Net loss	$ (162,604)	$ (530,257)	$ (443,073)	$ (1,200,940)	$ (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			138,157	127,211
Stock-based compensation			258,114	$ 502,408
Gain on settlement of accounts payable			$ (105,764)
Imputed value of services contributed				$ 116,667
Amortization of debt discount			$ 98,134	182,766
Changes in operating assets and liabilities:
Accounts receivable			20,898	208,058
Inventories - finished goods			(28,458)	136,964
Prepaid expenses and other current assets			(32,768)	(12,982)
Accounts payable - trade			(167,259)	(371,735)
Accounts payable - related parties			(44,314)	(35,017)
Accrued expenses and other current liabilities			(98,618)	356,491
Deferred revenue			(5,017)	(91,671)
Net cash used in operating activities			(407,825)	(127,101)	(875,769)
Cash flows from investing activities
Change in restricted cash			36,077	$ (650,074)
Capital expenditures			(5,539)
Website development costs			(18,125)	$ (98,001)
Net cash provided by (used in) investing activities			12,413	(748,075)
Cash flows from financing activities
Principal payments on equipment leases payable			$ (47,665)	(41,269)
Proceeds from issuance of notes payable				150,000
Repayment of notes payable and other advances - related parties			$ (37,700)	(5,000)
Proceeds from the sale of common stock				1,208,759
Net cash (used in) provided by financing activities			$ (85,365)	1,312,490
Net (decrease) increase in cash			(480,777)	437,314
Cash - beginning of period			506,019	67,744	67,744
Cash - end of period	$ 25,242	$ 505,058	25,242	505,058	$ 506,019
Cash paid for:
Interest			$ 58,416	$ 65,395
Taxes
Non-cash investing and financing activities:
Issuance of Series B preferred stock for settlement of accrued dividends			$ 298,917	$ 279,380
Warrants issued as debt discount in connection with notes payable			41,300	36,000
Accrual of contractual dividends on Series B convertible preferred stock			$ 239,882	$ 224,189

Organization and Basis of Prese

Organization and Basis of Presentation	9 Months Ended
	Sep. 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 America’s 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 September 30, 2015 and for the nine months ended September 30, 2015 and 2014. The results of operations for the nine months ended September 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	9 Months Ended
	Sep. 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 September 30, 2015, the Company had a working capital deficiency of $4,251,296 and an accumulated deficit of $30,895,820. During the nine months ended September 30, 2015 and the year ended December 31, 2014, the Company incurred net losses of $443,073 and $1,783,279, respectively, and used cash in operating activities of $407,825 and $875,769, respectively. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. On August 27, 2015, a vendor of the Company was granted an order of garnishment against the Company’s funds held in a bank account in the amount of $83,766 for an unpaid debt, accordingly, such amount has been classified as restricted cash as of September 30, 2015. On September 16, 2015, the Company’s senior lender filed a motion with the court to intercede in the garnishment action on the grounds that it has a superior lien on the funds which was granted at a hearing on October 6, 2015. In addition, as a result of the garnishment action, the senior lender notified the Company that an event of default has occurred on its senior note and the loan is in default and immediately payable. As of the date of this filing, the senior lender has not imposed the default rate of interest but has the right to at any time while the note is in default. The Company is working with the senior lender to cure the default. See Note 5 Notes Payable and Note 10 Subsequent Events. Subsequent to September 30, 2015, the Company raised an aggregate of $250,000 in debt financing and 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	9 Months Ended
	Sep. 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 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 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: September 30, 2015 2014 Options 5,266,128 2,601,700 Warrants 9,976,474 8,032,378 Series B Convertible Preferred Stock 5,507,202 4,844,143 Total potentially dilutive shares 20,749,804 15,478,221 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	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
4. Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consisted of the following: September 30, December 31, 2015 2014 Deferred Rent $ 28,402 $ 36,053 Advertising 76,639 109,930 Salaries and Benefits 61,937 82,222 Customer Payables 105 635 Dividend Payable 239,882 298,918 Accrued Interest 44,250 48,868 Accrued Rent 49,102 46,604 Other 22,536 57,276 Total $ 522,853 $ 680,506

Notes Payable

Notes Payable	9 Months Ended
	Sep. 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 met certain financial requirements which were not met. Effective September 1, 2015, the Lender agreed to extend the maturity date of the Senior note to November 1, 2015. 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 September 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 November 1, 2015, or earlier in the event of default or a sale or liquidation of the Company. See Note 10 Subsequent Events. 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 Company’s assets, in order to secure the Company’s obligation to repay the Loan, including a Deposit Account Control Agreement, which grants the Lender a security interest in certain bank accounts. On August 27, 2015, a vendor of the Company was granted an order of garnishment against the Company’s funds held in a bank account in the amount of $83,766 for an unpaid debt, accordingly, such amount has been classified as restricted cash as of September 30, 2015. On September 16, 2015, the Company’s Lender filed a motion with the court to intercede in the garnishment action on the grounds that it has a superior lien on the funds which was granted at a hearing on October 6, 2015. In addition, as a result of the garnishment action, the Lender notified the Company that an event of default has occurred on the Senior Note and the Loan is in default and immediately payable. The Company is working with the Lender to cure the default. 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 nine months ended September 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 $18,367 and $98,134 during the three and nine months ended September 30, 2015, respectively, and $64,865 and $ 182,766 for the three and nine months ended September 30, 2014, respectively. 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. During the three and nine months ended September 30, 2015, the Company made payments of $8,197.

Stockholders' Deficiency

Stockholders' Deficiency	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
6. Stockholders' Deficiency	Preferred Stock As of September 30, 2015 and December 31, 2014, the Company had accrued cumulative contractual dividends of $239,882 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 Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Risk free interest rate 1.74% to 2.28% 0.97% to 1.75% 1.35% to 2.28% 0.97% to 1.75% Dividend yield 0.00% 0.00% 0.00% 0.00% Expected volatility 196.0 to 197.0% 190.0% 195.0% to 197.0% 190.0% Expected life in years 5.5 to 10.0 3.0 to 5.5 5.5 to 10.0 3.0 to 5.5 Grants The weighted average fair value of the stock options granted during the three and nine months ended September 30, 2015 was $0.12 and $0.10 per share, respectively. The weighted average fair value of the stock options granted during the three and nine months ended September 30, 2014 was $0.17 per share. During the nine months ended September 30, 2015, the Company granted options to employees and directors of the Company to purchase an aggregate of 1,865,633 shares of common stock under the 2014 Plan at a weighted average exercise price of $0.10 per share for an aggregate grant date value of $184,860. The options have a vesting period ranging from immediate to three years and have a term of ten years. During the nine months ended September 30, 2015, the Company granted options to consultants of the Company to purchase an aggregate of 349,861 shares of common stock under the 2014 Plan at a weighted average exercise price of $0.11 per share for an aggregate grant date value of $37,423. The options have a vesting period ranging from immediate to three years and have a term of ten years. As of September 30, 2015, stock-based compensation expense related to stock options of $1,063,062 remains unamortized, including $171,493 which is being amortized over the weighted average remaining period of 2.0 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 nine months ended September 30, 2015 is presented below: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Life Intrinsic Options Price In Years Value Outstanding, January 1, 2015 3,944,557 $ 1.27 Granted 2,215,494 0.10 Exercised - - Forfeited (893,923 ) 0.84 Outstanding, September 30, 2015 5,266,128 $ 0.85 7.7 $ 5,971 Exercisable, September 30, 2015 3,654,959 $ 0.88 7.4 $ 2,521 The following table presents information related to stock options at September 30, 2015: Options Outstanding Options Exercisable Weighted Weighted Weighted Range of Average Outstanding Average Average Exercisable Exercise Exercise Number of Exercise Remaining Life Number of Price Price Options Price In Years Options $0.09 - $2.20 $ 0.23 4,307,628 $ 0.24 8.4 2,951,459 $2.21 - $3.80 3.23 751,500 2.95 2.2 501,500 $3.81 - $6.99 5.16 207,000 5.16 6.6 202,000 $ 0.85 5,266,128 $ 0.88 7.4 3,654,959 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 Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Risk free interest rate 1.75% 1.69% to 2.32% 1.26% to 1.75% 1.69% to 2.52% Dividend yield 0.00% 0.00% 0.00% 0.00% Expected volatility 196.0% 189.0% to 190.0% 195.0% to 197.0% 171.0% to 190.0% Expected life in years 7.1 5.0 to 8.0 5.0 to 7.5 5.0 to 8.5 Grants The weighted average fair value of the stock warrants granted during the nine months ended September 30, 2015 was $0.08 per share. There were no warrants granted during the three months ended September 30, 2015. The weighted average fair value of the stock warrants granted during the three and nine months ended September 30, 2014, was $0.22 and $0.23 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 nine months ended September 30, 2015 was recorded in the condensed consolidated statements of operations as a component of selling, general and administrative expenses and totaled $21 and $12,300, respectively, and $134,205 and $133,618 for the three and nine months ended September 30, 2014, respectively. As of September 30, 2015, stock-based compensation expense related to warrants of $576,880 remains unamortized, including $40 which is being amortized over the weighted average remaining period of 0.04 year. 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 nine months ended September 30, 2015 is presented below: Weighted Average Average Remaining Aggregate Number of Exercise Life Intrinsic Warrants Price In Years Value Outstanding, January 1, 2015 9,339,044 $ 0.45 Granted 637,430 $ 0.10 Exercised - $ - Forfeited - - Outstanding, September 30, 2015 9,976,474 $ 0.43 3.5 $ 1,374 Exercisable, September 30, 2015 9,716,474 $ 0.36 3.6 $ 1,374 The following table presents information related to stock warrants at September 30, 2015: Warrants Outstanding Warrants Exercisable Weighted Weighted Weighted Range of Average Outstanding Average Average Exercisable Exercise Exercise Number of Exercise Remaining Life Number of Price Price Warrants Price In Years Warrants $0.09 - $0.35 $ 0.27 9,383,628 $ 0.27 3.7 9,383,628 $0.36 - $3.00 2.91 562,846 2.91 0.9 312,846 $3.01 - $4.95 4.95 30,000 4.95 2.0 20,000 $0.09 - $4.95 $ 0.43 9,976,474 $ 0.36 3.6 9,716,474

Commitments and Contingent Liab

Commitments and Contingent Liabilities	9 Months Ended
	Sep. 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 Company’s 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 $28,402 and $36,053 as of September 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 $49,102 is reflected as a component of accrued expenses and other liabilities on the condensed consolidated financial statements as of September 30, 2015. For years ending December 31, Amount 2015 $ 17,604 2016 77,544 2017 12,000 2018 5,000 Total future minimum lease payments $ 112,148 During the three and nine months ended September 30, 2015, the Company recorded aggregate rent expense of $23,536 and $85,151, respectively, and $66,820 and $210,140 during the three and nine months ended September 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 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.

Concentrations

Concentrations	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
8. Concentrations	During the three months ended September 30, 2015, two vendors represented 61% and 11% of total inventory purchases, and 67% and 11% of total inventory purchases for the nine months ended September 30, 2015. During the three months ended September 30, 2014, two vendors represented 76% and 12% of total inventory purchases, and 68% and 14% of total inventory purchases for the nine months ended September 30, 2014. Two vendors represented 40% and 12% of the accounts payable balance as of September 30, 2015 and 36% and 11% as of December 31, 2014. One customer represented 6% and 22% of the accounts receivable balance as of September 30, 2015 and December 31, 2014, respectively.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 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 nine months ended September 30, 2015, the Company incurred consulting and other expenses of $20,000 and $100,000, respectively, and paid $20,000 and $60,000, respectively, 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 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 December 31, 2014, the Company estimated the value of the collateral at $2,143. During the nine months ended September 30, 2015, the Company wrote off the value of the collateral to $0.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 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. Option Grants On October 10, 2015, the Company granted options to directors of the Company to purchase an aggregate of 275,706 shares of common stock under the 2014 Plan at an exercise price of $0.10 per share for an aggregate grant date value of $27,000. 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. Notes Payable On November 11, 2015, the Company entered into a Loan Extension Agreement and an Amended and Restated Promissory Note with its Lender, effective November 1, 2015, which extended the maturity date of the Senior Note from October 31, 2015 to December 31, 2015 and increased the face amount of the Senior Note from $750,000 to $1,000,000 (November 2015 Note). The material November 2015 Note terms are unchanged from the Senior Note. In consideration of the Lender providing additional funds and entering into the November 2015 Note, the Company granted the Lender a five-year warrant to purchase 250,000 shares of Common Stock at an exercise price of $0.12 per share. In addition, the exercise price on 375,000 previously issued warrants was modified from $0.35 to $0.12. The warrant contains customary anti-dilution provisions.

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 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 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 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: September 30, 2015 2014 Options 5,266,128 2,601,700 Warrants 9,976,474 8,032,378 Series B Convertible Preferred Stock 5,507,202 4,844,143 Total potentially dilutive shares 20,749,804 15,478,221
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)	9 Months Ended
	Sep. 30, 2015
Summary Of Significant Accounting Policies Tables
Schedule of Potentially Dilutive Securities	September 30, 2015 2014 Options 5,266,128 2,601,700 Warrants 9,976,474 8,032,378 Series B Convertible Preferred Stock 5,507,202 4,844,143 Total potentially dilutive shares 20,749,804 15,478,221

Accrued Expenses and Other Cu18

Accrued Expenses and Other Current Liabilities (Tables)	9 Months Ended
	Sep. 30, 2015
Accrued Expenses And Other Current Liabilities Tables
Accrued expenses and other current liabilities	September 30, December 31, 2015 2014 Deferred Rent $ 28,402 $ 36,053 Advertising 76,639 109,930 Salaries and Benefits 61,937 82,222 Customer Payables 105 635 Dividend Payable 239,882 298,918 Accrued Interest 44,250 48,868 Accrued Rent 49,102 46,604 Other 22,536 57,276 Total $ 522,853 $ 680,506

Stockholders' Deficiency (Table

Stockholders' Deficiency (Tables)	9 Months Ended
	Sep. 30, 2015
Stock Option [Member]
Schedule of Stock Granted	For The Three Months Ended For The Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Risk free interest rate 1.74% to 2.28% 0.97% to 1.75% 1.35% to 2.28% 0.97% to 1.75% Dividend yield 0.00% 0.00% 0.00% 0.00% Expected volatility 196.0 to 197.0% 190.0% 195.0% to 197.0% 190.0% Expected life in years 5.5 to 10.0 3.0 to 5.5 5.5 to 10.0 3.0 to 5.5
Summary of Stock Activity	Weighted Weighted Average Average Remaining Aggregate Number of Exercise Life Intrinsic Options Price In Years Value Outstanding, January 1, 2015 3,944,557 $ 1.27 Granted 2,215,494 0.10 Exercised - - Forfeited (893,923 ) 0.84 Outstanding, September 30, 2015 5,266,128 $ 0.85 7.7 $ 5,971 Exercisable, September 30, 2015 3,654,959 $ 0.88 7.4 $ 2,521
Summary of Stock Outstanding and Exercisable	Options Outstanding Options Exercisable Weighted Weighted Weighted Range of Average Outstanding Average Average Exercisable Exercise Exercise Number of Exercise Remaining Life Number of Price Price Options Price In Years Options $0.09 - $2.20 $ 0.23 4,307,628 $ 0.24 8.4 2,951,459 $2.21 - $3.80 3.23 751,500 2.95 2.2 501,500 $3.81 - $6.99 5.16 207,000 5.16 6.6 202,000 $ 0.85 5,266,128 $ 0.88 7.4 3,654,959
Warrant [Member]
Schedule of Stock Granted	For The Three Months Ended For The Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Risk free interest rate 1.75% 1.69% to 2.32% 1.26% to 1.75% 1.69% to 2.52% Dividend yield 0.00% 0.00% 0.00% 0.00% Expected volatility 196.0% 189.0% to 190.0% 195.0% to 197.0% 171.0% to 190.0% Expected life in years 7.1 5.0 to 8.0 5.0 to 7.5 5.0 to 8.5
Summary of Stock Activity	Weighted Average Average Remaining Aggregate Number of Exercise Life Intrinsic Warrants Price In Years Value Outstanding, January 1, 2015 9,339,044 $ 0.45 Granted 637,430 $ 0.10 Exercised - $ - Forfeited - - Outstanding, September 30, 2015 9,976,474 $ 0.43 3.5 $ 1,374 Exercisable, September 30, 2015 9,716,474 $ 0.36 3.6 $ 1,374
Summary of Stock Outstanding and Exercisable	Warrants Outstanding Warrants Exercisable Weighted Weighted Weighted Range of Average Outstanding Average Average Exercisable Exercise Exercise Number of Exercise Remaining Life Number of Price Price Warrants Price In Years Warrants $0.09 - $0.35 $ 0.27 9,383,628 $ 0.27 3.7 9,383,628 $0.36 - $3.00 2.91 562,846 2.91 0.9 312,846 $3.01 - $4.95 4.95 30,000 4.95 2.0 20,000 $0.09 - $4.95 $ 0.43 9,976,474 $ 0.36 3.6 9,716,474

Commitments and Contingent Li20

Commitments and Contingent Liabilities (Tables)	9 Months Ended
	Sep. 30, 2015
Commitments And Contingent Liabilities Tables
Summary of future minimum payments under operating leases	For years ending December 31, Amount 2015 $ 17,604 2016 77,544 2017 12,000 2018 5,000 Total future minimum lease payments $ 112,148

Going Concern and Management'21

Going Concern and Management's Liquidity Plans (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Going Concern And Managements Liquidity Plans Details Narrative
Working Capital Deficiency	$ 4,251,296		$ 4,251,296
Accumulated deficit	(30,895,820)		(30,895,820)		$ (30,212,865)
Net Losses	$ (162,604)	$ (530,257)	(443,073)	$ (1,200,940)	(1,783,279)
Net Cash Used in Operating Activities			$ (407,825)	$ (127,101)	$ (875,769)

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Details) - USD ($)	Sep. 30, 2015	Sep. 30, 2014
Summary Of Significant Accounting Policies Details
Options	$ 5,266,128	$ 2,601,700
Warrants	9,976,474	8,032,378
Series B Convertible Preferred Stock	5,507,202	4,844,143
Total potentially dilutive shares	$ 20,749,804	$ 15,478,221

Accrued Expenses and Other Cu23

Accrued Expenses and Other Current Liabilities (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Accrued Expenses And Other Current Liabilities Details
Deferred rent	$ 28,402	$ 36,053
Advertising	76,639	109,930
Salaries and benefits	61,937	82,222
Customer payables	105	635
Dividends payable	239,882	298,918
Accrued interest	44,250	48,868
Accrued Rent	49,102	46,604
Other	22,536	57,276
Total	$ 522,853	$ 680,506

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Notes Payable Details Narrative
Warrants issued as debt discount in connection with notes payable			$ 41,300	$ 36,000
Amortization of the debt discount	$ 18,367	$ 64,865	98,134	$ 182,766
Payments of note payable	$ 8,197		$ 8,197

Stockholders' Deficiency (Detai

Stockholders' Deficiency (Details) - Stock Option [Member]	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Dividend yield	0.00%	0.00%	0.00%	0.00%
Expected volatility		190.00%		190.00%
Minimum [Member]
Risk free interest rate	1.74%	0.97%	1.35%	0.97%
Expected volatility	196.00%		195.00%
Expected life in years	5 years 6 months	3 years	5 years 6 months	3 years
Maximum [Member]
Risk free interest rate	2.28%	1.75%	2.28%	1.75%
Expected volatility	197.00%		197.00%
Expected life in years	10 years	5 years 6 months	10 years	5 years 6 months

Stockholders' Deficiency (Det26

Stockholders' Deficiency (Details 1) - Stock Option [Member]	9 Months Ended
	Sep. 30, 2015USD ($)$ / sharesshares
Number of Options, outstanding
Outstanding, beginning of period (in shares)	3,944,557
Granted	2,215,494
Exercised
Forfeited	(893,923)
Outstanding, end of period (in shares)	5,266,128
Exercisable, September 30, 2015	3,654,959
Weighted average exercise price
Outstanding, beginning of period (in dollars per share) | $ / shares	$ 1.27
Granted | $ / shares	$ 0.10
Exercised | $ / shares
Forfeited | $ / shares	$ 0.84
Outstanding, end of period (in dollars per share) | $ / shares	0.85
Exercisable, September 30, 2015 | $ / shares	$ 0.88
Weighted Average Remaining Life In Years
Weighted Average Remaining Life (in years) Outstanding	7 years 8 months 12 days
Weighted Average Remaining Life (in years) Exercisable	7 years 4 months 24 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value Outstanding | $	$ 5,971
Aggregate Intrinsic Value Exercisable, September 30, 2015 | $	$ 2,521

Stockholders' Deficiency (Det27

Stockholders' Deficiency (Details 2) - Stock Option [Member] - $ / shares	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Weighted Average Exercise Price Outstanding	$ 0.85	$ 1.27
Number Outstanding	5,266,128	3,944,557
Weighted Average Exercise Price Exercisable	$ 0.88
Weighted Average Remaining Years of Contractual Life	7 years 4 months 24 days
Number Exercisable	3,654,959
$0.09 - $2.20
Weighted Average Exercise Price Outstanding	$ 0.23
Number Outstanding	4,307,628
Weighted Average Exercise Price Exercisable	$ 0.24
Weighted Average Remaining Years of Contractual Life	8 years 4 months 24 days
Number Exercisable	2,951,459
$2.21 - $3.80
Weighted Average Exercise Price Outstanding	$ 3.23
Number Outstanding	751,500
Weighted Average Exercise Price Exercisable	$ 2.95
Weighted Average Remaining Years of Contractual Life	2 years 2 months 12 days
Number Exercisable	501,500
$3.81 - $6.99
Weighted Average Exercise Price Outstanding	$ 5.16
Number Outstanding	207,000
Weighted Average Exercise Price Exercisable	$ 5.16
Weighted Average Remaining Years of Contractual Life	6 years 7 months 6 days
Number Exercisable	202,000

Stockholders' Deficiency (Det28

Stockholders' Deficiency (Details 3) - Warrant [Member]	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Risk free interest rate	1.75%
Dividend yield	0.00%	0.00%	0.00%	0.00%
Expected volatility	196.00%
Expected life in years	7 years 1 month 6 days
Minimum [Member]
Risk free interest rate		1.69%	1.26%	1.69%
Expected volatility		189.00%	195.00%	171.00%
Expected life in years		5 years	5 years	5 years
Maximum [Member]
Risk free interest rate		2.32%	1.75%	2.52%
Expected volatility		190.00%	197.00%	190.00%
Expected life in years		8 years	7 years 6 months	8 years 6 months

Stockholders' Deficiency (Det29

Stockholders' Deficiency (Details 4) - Warrant [Member]	9 Months Ended
	Sep. 30, 2015USD ($)$ / sharesshares
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, September 30, 2015	9,716,474
Weighted average exercise price
Outstanding, beginning of period (in dollars per share) | $ / shares	$ 0.45
Granted | $ / shares	$ 0.09
Exercised | $ / shares
Forfeited | $ / shares
Outstanding, end of period (in dollars per share) | $ / shares	$ 0.43
Exercisable, September 30, 2015 | $ / shares	$ 0.36
Weighted Average Remaining Life In Years
Weighted Average Remaining Life (in years) Outstanding	3 years 6 months
Weighted Average Remaining Life (in years) Exercisable	3 years 7 months 6 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value Outstanding | $	$ 1,374
Aggregate Intrinsic Value Exercisable, September 30, 2015 | $	$ 1,374

Stockholders' Deficiency (Det30

Stockholders' Deficiency (Details 5) - Warrant [Member] - $ / shares	9 Months Ended
	Sep. 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 7 months 6 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 8 months 12 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	10 months 24 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
Number Exercisable	20,000
$0.09 - $4.95
Weighted Average Exercise Price Outstanding	$ 0.43
Number Outstanding	9,976,474
Weighted Average Exercise Price Exercisable	$ 0.36
Weighted Average Remaining Years of Contractual Life	3 years 7 months 6 days
Number Exercisable	9,716,474

Stockholders' Deficiency (Det31

Stockholders' Deficiency (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Stock Option [Member]
Weighted Average Fair Value	$ 0.12	$ 0.17	$ 0.10	$ 0.17
Selling, General And Administrative Expenses	$ 59,525	$ 99,940	$ 245,814	$ 358,144
Stock-based compensation expense, unamortized			1,063,062
Stock-Based Compensation Expense, amortized			$ 171,493
Weighted Average Remaining Period			2 years
Performance based option vesting			$ 891,569
Weighted average exercise price			$ 0.10
Warrant [Member]
Weighted Average Fair Value		$ 0.22	$ 0.08	$ 0.23
Selling, General And Administrative Expenses	$ 21	$ 134,205	$ 12,300	$ 133,618
Stock-based compensation expense, unamortized			576,880
Stock-Based Compensation Expense, amortized			$ 40
Weighted Average Remaining Period			15 days
Performance based option vesting			$ 576,840
Weighted average exercise price			$ 0.09
Employees And Directors [Member]
Common stock purchased			1,865,633
Weighted average exercise price			$ 0.10
Aggregate grant date value			$ 184,860
Option term			10 years
Employees And Directors [Member] | Minimum [Member]
Options vesting period			0 years
Employees And Directors [Member] | Maximum [Member]
Options vesting period			3 years
Consultants [Member]
Common stock purchased			349,861
Weighted average exercise price			$ 0.11
Aggregate grant date value			$ 37,423
Option term			10 years
Consultants [Member] | Minimum [Member]
Options vesting period			0 years
Consultants [Member] | Maximum [Member]
Options vesting period			3 years
Series B Preferred Stock [Member]
Preferred Stock Contractual Dividends			239,882		298,918

Commitments and Contingent Li32

Commitments and Contingent Liabilities (Details 1)	Sep. 30, 2015USD ($)
Commitments And Contingent Liabilities Details 1
2,015	$ 17,604
2,016	77,544
2,017	12,000
2,018	5,000
Total future minimum lease payments	$ 112,148

Commitments and Contingent Li33

Commitments and Contingent Liabilities (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Commitments And Contingent Liabilities Details Narrative
Deferred rent payable	$ 28,402		$ 28,402		$ 36,053
Accrued Rent	49,102		49,102		$ 46,604
Rent Expense	$ 23,536	$ 66,820	$ 85,151	$ 210,140

Concentrations (Details Narrati

Concentrations (Details Narrative)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Vendor 1 [Member]
Concentration Inventory Purchases Percentage	61.00%	76.00%	67.00%	68.00%
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	6.00%		6.00%		22.00%

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
Related Party Transactions Details Narrative
Consulting and other expenses	$ 20,000	$ 100,000
Paid for consulting agreement	20,000	60,000
Estimated the value of collateral	$ 0	$ 0	$ 2,143