HealthWarehouse.com, Inc. Reports Consolidated Earnings Results for the Year Ended December 31, 2014
Apr 3 15
HealthWarehouse.com, Inc. reported consolidated earnings results for the year ended December 31, 2014. For the year, net loss narrowed by 67.5%, to $1,783,279 from $5,489,892 a year ago. Net sales were $6,129,660, a 40.1% decrease from the comparable period in 2013, as the company shed non-profitable business relations in 2014 to focus on the higher margin out of pocket cash prescription market. Negative adjusted EBITDA was $596,594, against $870,207 in the year ended December 31, 2013, an improvement of 31.4%.
HealthWarehouse.com Renews Senior Secured Debt with Melrose Capital
Mar 18 15
HealthWarehouse.com, Inc. announced a renewal of the company's Senior Secured Debt for up to 12 months. Terms of the renewal from Melrose Capital extend the debt six months to September 1, 2015 and conditional on a $350,000 capital raise the maturity date can be extended an additional six months to March 1, 2016.
Healthwarehouse.com and Melrose Capital Advisors, LLC Enter into an Amended and Restated Promissory Note
Mar 11 15
Healthwarehouse.com is a party to a Loan and Security Agreement, dated as of with Melrose Capital Advisors, LLC. Under the terms of the Loan Agreement, the company borrowed an aggregate of $750,000 from the Lender, including $150,000 and $600,000 during the years ended December 31, 2014 and 2013, respectively. The Loan is evidenced by a promissory note in the face amount of $750,000, as amended. The Senior Note bears interest on the unpaid principal balance until the full amount of principal has been paid at a floating rate equal to the prime rate plus 4.25% per annum (7.50% as of December 31, 2014). Under the terms of the Loan Agreement, the company has agreed to make monthly payments of accrued interest on the first day of every month. The principal amount and all unpaid accrued interest on the Senior Note is payable on March 1, 2015, or earlier in the event of default or a sale or liquidation of the company. The Loan may be prepaid in whole or in part at any time by the company without penalty. The 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. 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, dated as of August 18, 2014, which grants the Lender a security interest in certain bank accounts of the company. The Loan Agreement contains customary negative covenants restricting the company's ability to take certain actions without the Lender's consent, including incurring additional indebtedness, transferring or encumbering assets, paying dividends or making certain other payments, and acquiring other businesses. Upon the occurrence of an event of default, the Lender has the right to impose interest at a rate equal to 5.0% per annum above the otherwise applicable interest rate. The repayment of the Loan may be accelerated prior to the maturity date upon certain specified events of default, including failure to pay, bankruptcy, breach of covenant, and breach of representations and warranties. On March 9, 2015, the company and the Lender entered into an Amended and Restated Promissory Note, effective March 1, 2015, pursuant to which the Lender agreed to extend the maturity date of the Senior Note from March 1, 2015 to September 1, 2015. As part of the extension, financial covenants were set which require the company to meet certain minimum targets for EBITDAS for the calendar quarters ending on March 31 and June 30, 2015. In consideration of the Lender extending the maturity date of the Senior Note, the company granted the Lender a five-year warrant to purchase 500,000 shares of common stock of the company at an exercise price of $0.10 per share. The Warrant contains customary anti-dilution provisions.