EXHIBIT 99.1
MARCUM MICROCAP CONFERENCE 2016GRAND HYATT, NEW YORK, NYJUNE 1, 2016
This presentation may contain forward-looking statements regarding future events or the future financial and operational performance of HealthWarehouse.com. Words such as “targets,” “expects,” “believes,” “anticipates,” “intends,” “may,” “will,” “plan,” “continue,” “forecast,” “remains,” “would,” “should,” “projected,” “focus” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on current expectations, are not guarantees of future performance and involve assumptions, risks, and uncertainties. Actual performance may differ materially from those contained or implied in such forward-looking statements. Risks and uncertainties that could lead to such differences could include, among other things: effects of changes in the economy; changes in consumer spending; fluctuations in the stock market; changes affecting the Internet, online retailing and advertising; difficulties establishing our brand and building a critical mass of customers; the unpredictability of future revenues and expenses and potential fluctuations in revenues and operating results; risks related to business combinations and strategic alliances; possible tax liabilities relating to the collection of sales tax; consumer trends; the level of competition; seasonality; the timing and success of expansion efforts; changes in senior management; risks related to systems interruptions; possible governmental regulation; and the ability to management a growing business. Additional information regarding factors that potentially could affect our business, financial condition and operating results is included in our periodic filings with the SEC on our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Forward-looking statements represent our views as of today and we expressly disclaim any intent or obligation to update any forward-looking statement. 2 Safe Harbor Statement
3 Company Profile E-commerce pharmacy selling generic & brand name prescription medications and OTC products with convenient online ordering & home deliveryHeadquarters Florence, KY (Cincinnati, OH metro area)Operations began in 200748 full-time employeesPublicly traded (OTCQB:HEWA) $13M market capitalization+119% YTD increase in share price
Investment Highlights Consumer Reports and media validation High customer satisfaction ratings Proprietary technology for online prescriptions Multi billion dollar growing cash market Large, growinginsured/uninsured customer base Recurring and sticky Rx revenue model Increasing stock price Accelerating revenues and strong gross margins 4
Historical Income Statement 2010 2011 2012 2013 2014 2015 Sales $5,691,765 $10,363,293 $11,081,429 $10,233,112 $6,129,660 $7,018,137 Gross Profit $2,241,744 $4,517,768 $5,167,452 $5,121,357 $3,637,278 $4,471,745 Gross Profit % 39% 44% 47% 50% 59% 64% Opex $5,303,617 $9,246,431 $9,657,821 $7,554,954 $5,370,727 $5,001,654 Net Loss ($3,691,674) ($2,439,502) ($5,574,775) ($5,489,892) ($1,783,279) ($626,682) EBITDAS ($2,094,360) ($1,828,865) ($659,325) ($870,207) ($596,594) ($23,080) 5
America’s Trusted Online Pharmacy focusing on consumers who pay out of pocket for their prescriptions and over the counter productsConsumers who pay out of pocket for their prescriptions include those:With no insurance coverageWith high insurance deductibles or copaysWith Health Savings Accounts (HSA) or Flexible Savings Accounts (FSA)With insurance through the Affordable Care Act (ACA) with high deductiblesWith Medicare Part D plans with high deductiblesWith drug exclusions and quantity restrictions placed by insurance companies Our Core Business 6
1 of 45 VIPPS accredited pharmacies by NABPOnly VIPPS accredited pharmacy selling online to customers in all 50 states & Washington D.C.Only VIPPS accredited pharmacy targeting $80 billion cash marketVIPPS accreditation enables HealthWarehouse.com to attain an online marketing presence VIPPS: Verified Internet Pharmacy Practice SitesNABP: National Association of Boards of Pharmacy Unique Positioning 7
8 Search Engines Social Media Customer Acquisition Sources Partners
9 Customer Convenience 80% of U.S. population reached in 2 days or less HealthWarehouse.com offers quick delivery from the company’s headquarters, combining convenient online ordering with home delivery 9 "Great customer service, quick accurate, no worry fast deliveries. Easy website to work with.” Jonathan April 26, 2016
Cost paid by Customer,Employer, Insurance Current Supply Chain Customer Manufacturer Wholesaler Distributor Pharmacy HealthWarehouse Model Savings to Customer,Employer, Insurance Manufacturer Customer 10 Simplify Channel Distribution
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12 Savings for Core Rx Customers Drug1 Qty Benazepril20mg tablets 90 $9.00 $9.99 $10.00 $10.00 $38.39 $12.00 $38.39 $53.99 Famotidine 20mg tablets 90 $5.40 $8.10 $41.99 $6.00 $37.09 $10.00 $37.09 $35.99 Gabapentin 300mg capsules 90 $12.60 $14.82 $29.49 $44.85 $92.59 $26.40 $92.59 $92.99 Levothyroxin50mg tablets 90 $61.37 $26.97 $62.99 $10.00 $35.09 $46.00 $35.09 $29.89 Nitrofuratoin50mg capsules 90 $151.20 $83.99 $164.99 $175.16 $86.59 $125.00 $86.59 $131.89 Paroxetine20mg tablets 90 $9.00 $9.99 $10.00 $10.00 $90.59 $10.00 $90.59 $28.69 Pioglitazone15mg tablets 90 $25.20 $25.40 $375.99 $294.00 $437.99 $150.00 $438.00 $581.99 Simvastatin40mg tablets 90 $9.00 $13.41 $61.49 $53.00 $117.99 $58.00 $118.00 $89.89 Sumatriptan100mg tablets 27 tablets3 pack) $38.91 $47.97 $133.49 $284.83 $439.99 $365.00 $439.99 $500.89 Tacrolimus 1mg capsules 90 $111.60 $61.00 $353.49 $358.24 $352.99 $322.00 $353.00 $487.89 Tamiflu75mg capsules 27 tablets3 packs $143.28 $132.70 $144.99 $138.33 $144.99 $133.00 $145.00 $146.99 Valayclovir50mg tablets 90 $61.20 $74.17 $328.49 $475.11 $554.99 $461.00 $555.00 $602.99 1 Source: Cash, out-of-pocket price sold in Scottsdale, AZ on May 20, 2015
13 Retail Pharmacy Focus Shifting significant portion of revenue stream away from prescription medications Groceries Beer & Wine Coffee Bars
Affordable Care Act increasing deductibles & copays by 34%1Nevada Silver State Exchange Bronze Plan increases $6,000 deductible for an individual$12,000 deductible for a familyMarket quickly moving from insurance to cash$80 billion cash prescription market by 20152 “ObamaCare” Opportunity 1 Source: HealthPocket.com2 Cash market estimated at $20 billion in 2007 at HealthWarehouse founding 14
Year 2007 2014 2016 Consumer Profile Uninsured Insured All Customer 5% Insured 90% Insured All Income Level Low Middle All Levels Reason Shopping Online No Alternative Increasing copays Convenience Demand Driver Price Price & Convenience Online & Mobile Innovator Big Box Chains Grocery Chains ACA Impact on Rx Consumer 15
Lipitor®Zyprexa®Levaquin® Effexor XR®Flomax®Aricept®Cozaar®Hyzaar®Lovenox® Abilify® Prevacid®Topamax®Valtrex®Adderall XR® Propecia®Tricor ® Cymbalta® Aciphex® Nasonex ®Nexium®Celebrex®Proair HFA® Plavix®Seroquel®Singulair®Actos®Tricor®Lexapro®Diovan®Diovan HCT®Lidoderm® $212 billion in brands go generic 2009-2015 Once drugs go generic, cash price on HealthWarehouse typically cheaper than copay/deductibleSource: HealthWarehouse 16 Brand to Generic Opportunity
17 Market Consolidation Brick & mortar retail pharmacy chains merging with wholesalers for increased margin & distributionWalgreens & Amerisource Bergen (May 2013)CVS & Cardinal Health (December 2013)Rite Aid & McKesson (February 2014)CVS & OmniCare (May 2015)Walgreens & Rite Aid (November 2015) 17
Q3’ 2013 Q4’ 2015 Change % Change Inventory $ 393,000 $ 183,000 $ 210,000 -53% Accounts Receivable $ 270,000 $ 0 $ 270,000 -100% Accounts Payable $3,336,000 $2,190,000 $1, 146,000 -34% Operating Expenses $2,167,000 $1,290,000 $ 877,000 -40% Full Time Employees 50 36 14 -28% Blended Gross Margin 48% 63% 15% +31% EBITDAS ($ 672,000) ($ 29,000) $ 643,000 +96% Renewed Focus on Core Business 18
Q4’ 2014 Q4’ 2015 Change % Change Sales $1,475,000 $1,845,000 $ 370,000 +25% Gross Profit $ 906,000 $1,152,000 $ 246,000 +27% Operating Expenses $1,684,000 $1,290,000 ($ 394,000) -23% Net Income ($ 582,000) ($ 46,000) $ 536,000 +92% EBITDAS ($ 392,000) ($ 29,000) $ 363,000 +93% Renewed Focus on Core Business 19
Q1’ 2015 Q1’ 2016 (P) Change % Change Sales $1,613,000 $2,348,000 $ 735,000 +46% Gross Profit $ 982,000 $1,456,000 $ 474,000 +48% Operating Expenses $1,108,000 $1,684,000 $ 576,000 +52% Net Loss ($ 201,000) ($ 254,000) ($ 53,000) -26% EBITDAS ($ 65,000) ($ 107,000) ($ 42,000) -65% Accelerating Growth 20 P: Projected: Q1’ 2016 to be reported the week of May 9, 2016
Q4’ 2015 Q1’ 2016 Change % Change New Prescriptions 20,779 29,292 +8,513 +41% Refill Prescriptions 22,028 26,521 +4,493 +20% Total 42,807 55,813 +13,006 +30% Net Transfers 3,518 4,675 +1,157 +33% Prescription Business 21
Q4’ 2014 Q4’ 2015 Change % Change New Prescriptions 12,942 20,779 +7,837 +61% Refill Prescriptions 17,551 22,028 +4,477 +26% Total 30,493 42,807 +12,314 +40% Net Transfers 1,258 4,675 +3,417 +272% Prescription Business 22
Q1’ 2015 Q1’ 2016 Change % Change New Prescriptions 13,780 29,292 +15,512 +113% Refill Prescriptions 16,871 26,521 +9,650 +57% Total 30,651 55,813 +25,162 +82% Net Transfers 1,308 4,675 +3,367 +357% Prescription Business 23
Projected Income Statement 2011 2012 2013 2014 2015 2016 (P) Sales $10,363,293 $11,081,429 $10,233,112 $6,129,660 $7,018,137 $10,041,000 Gross Profit $4,517,768 $5,167,452 $5,121,357 $3,637,278 $4,471,745 $6,326,000 Gross Profit % 44% 47% 50% 59% 64% 63% Opex $9,246,431 $9,657,821 $7,554,954 $5,370,727 $5,001,654 $6,480,,000 Net Loss ($2,439,502) ($5,574,775) ($5,489,892) ($1,783,279) ($626,682) ($400,000) EBITDAS ($1,828,865) ($659,325) ($870,207) ($596,594) ($23,080) $100,000 24 P: Projected, unaudited financials
Highly Rated by 3rd Parties 25 Based on 599 reviews Excellent 9.1 out of 10, based on 659 reviews
Voice of the Customer 26 “As I recently lost my health insurance, this was the first time I had even compared prices on my prescription. Never really knew the true cost at my local pharmacy. I was shocked when I called them to ask what my perscriptions cost without insurance. That's when I started researching other avenues. I have been impressed with the speed of delivery, ease of transferring my Rx, and ease of ordering. Very impressed.” - May 2016 “Best alternative to Canadian drugslicensed in the USA so subject to the same regulations. I've told anyone who will listen about them. I've been using them for years. If you have any problems, their customer service is responsive and quick.” - May 2016 Nina Wendy “This is one of the most courteous and professional pharmacies period. I love their customer service and their experience and knowledge of products. We need these pharmacies, as the ones on the corners are becoming convenience stores instead of caring for the health of their patients. Thank you for your service.” - March 2016 David “When I lost my health insurance, I went looking for the best prices for my generic meds. Fortunately, I found Healthwarehouse.com. Not only were my prescriptions available at great prices, but when I did get insurance, I found that I could continue to get my meds at better prices than my co-pays. Their automatic renewals and mailed delivery help me avoid the monthly wait checkout in the local pharmacy. Great company. Thanks for keeping prices low and providing great service.” - April 2016 Gail
Thank you!
28 Management Team Lalit Dhadphale | Chairman, President & CEOCo-founded HealthWarehouse.com in August 2007 and launched the company's prescription drug business in 2008. Prior, co-founded Zengine, Inc. serving as V.P. of Product Development and later as Chief Operating Officer. Under his day-to-day leadership, Zengine grew from start-up to $30+ million in annualized sales, achieving profitability in its second quarter as a public company. Prior to co-founding Zengine, Mr. Dhadphale was a co-founder of Excite Japan, where he was involved with product development, internationalization and localization of web sites and Internet products. He produced the launch of both Excite Japan and Netscape Netcenter Japan. Prior, Mr. Dhadphale was International Business Development Manager for CNET, securing relationships throughout Asia and the Pacific Rim. Mr. Dhadphale received his BA from the University of Michigan, Ann Arbor in Japanese Language & Literature and Asian Studies.Dan Seliga MBA | COO & CFOMr. Seliga joined the company in January 2016 and has provided financial and operational consulting to the Company since August 2013. He has held various leadership positions in operations and finance with private companies located in the southwest Ohio region since 1996. Most recently he was General Manager and Business Manager for the largest truck dealership network in Ohio and previously he was CFO and VP of Operations for a wholesale distributor of commercial construction materials and a retail home improvement company. In these capacities, Mr. Seliga gained extensive experience in both the acquisition and sale of various business units. Prior to 1996, he was a commercial and real estate lending officer for Bank of New York and PNC Bank serving middle market companies primarily located in the New York, Connecticut and Ohio. Mr. Seliga received his MBA in Finance from the University of Notre Dame in 1988 and his BS in Accounting from Saint Vincent College in 1987.
29 Management Team Jennifer Trenkamp RPh | Pharmacist In ChargeMs. Trenkamp joined HealthWarehouse.com in May 2014 and is the Pharmacist In Charge (PIC). She is currently responsible for the company's pharmacy operations and has helped the company complete its Verified Internet Pharmacy Practice Sites (VIPPS) re-accreditation. Previously, she was Pharmacist in Charge for 14 years at Remke Biggs Pharmacy, a grocery/retail chain owned by SuperValu in the Cincinnati metropolitan area. Ms. Trenkamp received her BS in Pharmacy from the University of Cincinnati in 1995.Joseph Peters CpHT | VP of OperationsMr. Peters joined HealthWarehouse.com in January of 2012, working in nearly every role in the company before becoming Human Resources Manager in 2013 and Vice President of Operations in 2014. With his unique experience at all levels of the organization, Mr. Peters who is also a Certified Pharmacy Technician (CpHT), currently oversees all aspects of the company's operations, including pharmacy, customer service, and fulfillment. Prior to joining HealthWarehouse.com, Mr. Peters was Director of Operations at ToneRite, Inc., a company producing automatic musical instrument tuners sold on and offline. Mr. Peters oversaw multiple departments from assembly to sales and promotion. Mr. Peters led the company's successful expansion overseas into Australia, Singapore and Japan. Mr. Peters received his BA from the University of Florida in Business Management in 2009 and MA in International Business in 2010.
Board of Directors Ambassador Ned L. SiegelAmbassador Siegel was appointed by then President George W. Bush, as the U.S. Ambassador to the Commonwealth of the Bahamas from October 2007 to January 2009. He was also appointed by President Bush to serve under Ambassador John R. Bolton at the United Nations in New York, serving as the Senior Advisor to the U.S. Mission and as the United States representative to the 61st Session of the United Nations General Assembly. Prior to his ambassadorship, he was appointed to the Board of Directors of the Overseas Private Investment Corporation (OPIC). In addition to his public service, Ambassador Siegel has over 30 years of entrepreneurial successes. Presently, he is Chairman of the Board of The Siegel Group, a multi-disciplined international business management advisory firm specializing in infrastructure, real estate, ports, energy, utilities, technology and financial services. Ambassador Siegel serves on the Board of Directors and Advisory Boards of numerous public and private companies, and private equity groups. He graduated Phi Beta Kappa from the University of Connecticut in 1973 and received a JD from the Dickinson School of Law in 1976.Youssef Bennani MBAThrough January 30, 2012, Mr. Bennani was a Senior Managing Director in Kaufman Bros., L.P.’s Investment Banking department which he joined in 1995. His responsibilities ranged from public and private financing transactions to general financial advisory for mergers and acquisition, restructuring, acquisition financing and recapitalization. Prior to joining Kaufman Bros., L.P., Mr. Bennani was an investment banker at Barington Capital, L.P., where his primary industry focus was technology. Mr. Bennani received his MA in Computer Science as well as BS in mathematics and physics from the University of Pierre and Marie Curie in Paris. He also received his MBA in international finance from New York University’s Stern School of Business. 30
Board of Directors Joseph SavarinoIn January 2014, Mr. Savarino was named CEO of Carpeturn.com, Inc. has been a co-founder and Director since June 2010. Carpeturn.com provides flooring materials and services to the multifamily housing industry, where customers have online and mobile access to schedule installations, manage budgets and track apartment histories. Mr. Savarino was engaged in select Internet and e-commerce consulting projects from 2002 through June 2010 and has prior experience in management, sales, business development and market research. Mr. Savarino was President and Chief Executive Officer of Zengine, Inc., from 1998 until its sale in 2002. Zengine was a public company that provided sell-side e-commerce software and services to customers in the United States and Japan. Mr. Savarino received his BA from the University of Michigan, Ann Arbor in English Literature and Japanese Language & Literature.Joseph HeimbrockJoseph Heimbrock is currently the Regional General Manager in Ohio for Rush Enterprises, Inc. Rush Enterprises (NASDAQ:RUSHA), which is headquartered in New Braunfels, Texas, owns and operates the nation’s largest network of commercial vehicle dealerships Rush Truck Centers representing truck and bus manufacturers including Peterbilt, International, BlueBird and IC Bus. Mr. Heimbrock has over 30 years of business experience primarily in the commercial trucking industry, including sales, marketing and operational management. Mr. Heimbrock received his BS degree from Northern Kentucky University in Accounting. 31