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Organization and Reverse Recapitalization
12 Months Ended
Dec. 31, 2012
Notes to Financial Statements  
Organization and Reverse Recapitalization
1.  Organization and Reverse Recapitalization

On May 14, 2009, Hwareh.com, Inc. (“Old HW”) completed a share exchange transaction with Clacendix, Inc. (“Clacendix”), pursuant to the terms of a Securities Exchange Agreement.   This transaction was accounted for as a reverse recapitalization, whereby Old HW was deemed to be the accounting acquirer for accounting purposes since the former stockholders of Old HW owned a majority of the outstanding shares of the Company’s common stock immediately following the transaction.  Following the closing of the share exchange transaction with Hwareh.com, Clacendix succeeded to the business of Old HW as its sole line of business.  Effective August 5, 2009, Clacendix changed its corporate name to HealthWarehouse.com, Inc. The consolidated financial statements in this report are the financial statements of Healthwarehouse.com Inc. and subsidiaries (the “Company”). On February 14, 2011, the Company acquired all of the inventory and fixed assets owned by Hocks Pharmacy and used in the operation of its internet pharmacy business as well as acquired its customer list and domain name (see Note 15).

Healthwarehouse.com, Inc. is a U.S. licensed virtual retail pharmacy (“VRP”) and healthcare e-commerce company that sells brand name and generic prescription drugs as well as over-the-counter (“OTC”) medical products. The Company’s objective is to be viewed by individual healthcare product consumers as a low-cost, reliable and hassle-free provider of prescription drugs and OTC medical products. The Company is presently licensed as a mail-order pharmacy for sales to 50 states and the District of Columbia.

On May 5, 2010, the Company announced that its Board of Directors had approved a 1-for-20 reverse split of its common stock, pursuant to previously obtained stockholder authorization. This reverse stock split became effective, on July 16, 2010, which reduced the number of authorized shares of common stock from 750 million to 50 million.  All share amounts included in the consolidated financial statements and notes thereto have been retroactively adjusted for the reverse stock split. Impacted amounts include shares of common stock authorized and outstanding, common share issuances, shares of common stock underlying stock options and warrants, convertible notes, convertible preferred shares common shares reserved and loss per share.