10-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K/A

(Amendment No. 1)

(Mark One)

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Fiscal Year Ended December 31, 2012

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________________ -

Commission file number 0-13117

HEALTHWAREHOUSE.COM, INC.

(Exact name of registrant as specified in its charter)

Delaware	22-2413505
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
7107 Industrial Road, Florence KY	41042
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (800) 748-7001

Securities registered pursuant to Section 12(b) of the Act:

Title of Class	Name of each exchange on which registered
None	None

Securities registered pursuant to Section 12(g) of the Act:

Common Stock, $0.001 par value

(Title of Class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.   o Yes x No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.  o Yes  x No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. o Yes x No  

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   xYes  oNo

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of “accelerated filer” and “large accelerated filer” in Rule 12b-2 of the Act. (Check one):

Large accelerated filer   o Accelerated filer   o Non-accelerated filer  o Smaller reporting company  x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes o No  x

The aggregate market value of voting and nonvoting common equity held by non-affiliates, based on the closing price of the common stock, par value $0.001 (the “Common Stock”) on June 29, 2012 of $6.30, as reported on the OTC Pink market tier was approximately $29,864,000. Shares of Common Stock held by each officer and director and by each person who owns 5% or more of the outstanding Common Stock have been excluded in that such persons may be deemed to be affiliates. This determination of affiliate status is not necessarily a conclusive determination for any other purpose.

There were 26,050,960 shares of Common Stock outstanding as of July 17, 2013.

DOCUMENTS INCORPORATED BY REFERENCE:    None

Explanatory Note

The purpose of this Amendment No. 1 to HealthWarehouse.com, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2012 (the “Form 10-K”), as filed with the Securities and Exchange Commission on July 23, 2013, is to furnish Exhibits 101 to the Form 10-K in accordance with Rule 201(c) and Rule 405 of Regulation S-T.  Exhibits 101 provide the financial statements and related notes from the Form 10-K formatted in XBRL (eXtensible Business Reporting Language).  This Amendment No. 1 to the Form 10-K also updates the Exhibit Index to reflect the furnishing of Exhibits 101.

No other changes have been made to the Form 10-K.  This Amendment No. 1 to the Form 10-K continues to speak as of the original filing date of the Form 10-K, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way the disclosures made in the original Form 10-K.

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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated:  August 19, 2013 HEALTHWAREHOUSE.COM, INC.     By:  /s/   Lalit Dhadphale                                                     Lalit Dhadphale                President and Chief Executive Officer               (principal executive officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Name	Title	Date
/s/  Lalit Dhadphale                                                    Lalit Dhadphale	President, Chief Executive Officer and Director (principal executive officer)	August 19, 2013
	Director	August 19, 2013
Youssef Bennani
/s/  Joseph Savarino	Director	August 19, 2013
Joseph Savarino
/s/  Ambassador Ned L. Siegel	Director	August 19, 2013
Ambassador Ned L. Siegel
___________________________________	Director	August 19, 2013
Matthew Stecker

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Exhibit Index

Exhibit No.	Description
2.1	Share Exchange Agreement, dated May 14, 2009, between Clacendix, Inc. and HealthWarehouse.com, Inc. (1)
2.2	Asset Purchase Agreement, dated February 14, 2011, among Hocks Acquisition Corporation, and Hocks Pharmacy, Inc. and its stockholders. (10)
2.3	Merger Agreement dated February 14, 2011, among HealthWarehouse.com, Inc., Hocks Acquisition Corporation, Hocks Pharmacy, Inc. and its stockholders, and Hocks.com, Inc. (10)
3.1	Certificate of Incorporation of the Company, as amended through December 31, 2005. (2)
3.2	Certificate of Amendment of the Certificate of Incorporation of the Company, filed on January 4, 2008. (3)
3.3	Certificate of Amendment of the Certificate of Incorporation of the Company, filed on July 14, 2008. (4)
3.4	Certificate of Amendment of the Certificate of Incorporation of the Company, filed on July 31, 2009. (5)
3.5	Certificate of Amendment to the Company’s Certificate of Incorporation filed on July 16, 2010. (8)
3.6	Certificate of Designation of Preferences, Rights and Limitations of Series B Preferred Stock Pursuant to Section 151 of the Delaware General Corporation Law. (9)
3.7	Amended and Restated By-Laws of the Company. (9)
3.8	Certificate of Designation of Preferences, Rights and Limitations of Series C Preferred Stock Pursuant to Section 151 of the Delaware General Corporation Law, filed on October 17, 2011. (15)
4.1	Warrant to Purchase 156,250 Shares of the Common Stock of HealthWarehouse.com, Inc. dated November 8, 2010 and Issued to HWH Lending, LLC, as Lender.  (11)
4.2	Warrant to Purchase 156,250 Shares of Common Stock of HealthWarehouse.com, Inc. dated November 8, 2010 and issued to HWH Lending, LLC as Lender.  (11)
4.3	Warrant to Purchase 156,250 Shares of Common Stock of HealthWarehouse.com, Inc. dated November 8, 2010 and issued to Milfam I L.P.  (11)
4.4	Warrant to Purchase 156,250 Shares of Common Stock of HealthWarehouse.com, Inc. dated November 8, 2010 and issued to Milfam I L.P.  (11)
4.5	Form of Common Stock Purchase Warrant. (9)
4.6	Senior Secured Convertible Promissory Note dated November 8, 2010 in the amount of $500,000 payable by the Company to the order of Milfam I L.P. (9)
4.7	Senior Secured Convertible Promissory Note dated November 8, 2010 in the amount of $500,000 payable by the Company to the order of HWH Lending, LLC. (9)
4.8	Senior Secured Promissory Note dated September 2, 2011 in the principal amount of $1,500,000 payable by the Company to the order of HWH Lending, LLC. (14)

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4.9	Warrant to Purchase 250,000 Shares of the Common Stock of HealthWarehouse.com, Inc., dated September 2, 2011 and Issued to HWH Lending, LLC. (14)
4.10	Senior Secured Promissory Note dated September 2, 2011 in the principal amount of $1,500,000 payable by the Company to the order of Milfam I, L.P. (14)
4.11	Warrant to Purchase 250,000 shares of the Common Stock of Healthwarehouse.com, Inc. dated September 2, 2011 and issued to Milfam I, L.P. (14)
4.12	Form of Common Stock Purchase Warrant. (15)
4.13	Promissory Note dated March 28, 2013 in the amount of $500,000 payable by the Company to the order of Melrose Capital Advisors, LLC. (16)
4.14	Warrant to Purchase 750,000 shares of the Common Stock of HealthWarehouse.com, Inc. dated March 18, 2013 and issued to Melrose Capital Advisors, LLC. (16)
10.1	2009 Incentive Compensation Plan. (6) +
10.2	Form of Stock Option Agreements under 2009 Incentive Compensation Plan. (7) +
10.3	Securities Purchase Agreement dated November 8, 2010. (9)
10.4	Loan and Security Agreement dated November 8, 2010 among HealthWarehouse.com, Inc. and Hwareh.com, Inc., as Borrowers, and HWH Lending, LLC and Milfam I L.P. as Lenders. (9)
10.5	Securities Purchase Agreement dated August 3, 2011. (12)
10.6	Investor Rights Agreement dated August 3, 2011. (12)
10.7	Indemnification Agreement dated August 3, 2011. (12)
10.8	Lease agreement dated June 15, 2011 between the Company and the landlord for 7107 Industrial Road Florence, Kentucky. (13)
10.9	Loan and Security Agreement dated September 2, 2011 among HealthWarehouse.com, Inc., Hwareh.com, Inc. and Hocks.com, Inc., as Borrowers, and HWH Lending LLC, and Milfam I, L.P., as Lenders. (14)
10.10	Stock Purchase Agreement dated September 2, 2011 between the Company and Rock Castle Holdings, LLC. (14)
10.11	Securities Purchase Agreement dated October 17, 2011. (15)
10.12	Amendment No. 1 to Investor Rights Agreement dated October 17, 2011. (15)
10.13	Form of Subscription Agreement for Common Stock. (15)
10.14	Security Agreement dated March 28, 2013 between HealthWarehouse.com, Inc., Hwareh.com, Inc. and Hocks.com, Inc., as Debtors, and Melrose Capital Advisors, Inc. as secured party. (16)
21.1	Subsidiaries of the Registrant.  *
31.1	Certification of CEO Pursuant to Section 302 of the Sarbanes Oxley Act of 2002.  *
31.2	Certification of CFO Pursuant to Section 302 of the Sarbanes Oxley Act of 2002.  *
32.1	Certification of CEO Pursuant to Section 906 of the Sarbanes Oxley Act of 2002.  *
32.2	Certification of CFO Pursuant to Section 906 of the Sarbanes Oxley Act of 2002.  *

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101.INS	XBRL Instance Document   **
101.SCH	XBRL Schema Document   **
101.CAL	XBRL Calculation Linkbase Document   **
101.DEF	XBRL Definition Linkbase Document   **
101.LAB	XBRL Label Linkbase Document   **
101.PRE	XBRL Presentation Linkbase Document   **

*   **     +      (1)     (2)     (3)   Filed as an exhibit to the original Form 10-K for the year ended December 31, 2012, filed July 23, 2013. In accordance with SEC rules, this interactive data file is deemed “furnished” and not “filed” for purposes of Sections 11 or 12 of the Securities Act of 1933 and Section 18 of the Securities and Exchange Act of 1934, and otherwise is not subject to liability under those sections or acts.   Denotes Management Compensatory Plan or Contract.   Incorporated by reference to the Company’s Current Report on Form 8-K filed on May 15, 2009.   Incorporated by reference to the Company’s Annual Report on Form 10-K SB filed on March 29, 2006.   Incorporated by reference to the Company’s Annual Report on Form 10-K filed on March 27, 2009.

(4)   Incorporated by reference to the Company’s Annual Report Amendment on Form 10-KA filed on May 14, 2009.

(5)   Incorporated by reference to the Company’s Current Report on Form 8-K filed on August 6, 2009.

(6)   Incorporated by reference to the Company’s Current Report Amendment on Form 8-KA filed on May 26, 2009.

(7)   Incorporated by reference to the Company’s Annual Report on Form 10-K filed on April 15, 2010.

(8)   Incorporated by reference to the Company’s Current Report on Form 8-K filed on July 21, 2010.

(9)   Incorporated by reference to the Company’s Current Report on Form 8-K filed on November 12, 2010.

(10)   Incorporated by reference to the Company’s Current Report on Form 8-K filed on February 16, 2011.

(11)   Incorporated by reference to the Company’s Annual Report on Form 10-K filed on April 15, 2011.

(12)   Incorporated by reference to the Company’s Current Report on Form 8-K filed on August 8, 2011.

(13)   Incorporated by reference to the Company’s Quarterly Report on Form 10-Q filed on August 15, 2011.

(14)   Incorporated by reference to the Company’s Current Report on Form 8-K filed on September 6, 2011.

(15)   Incorporated by reference to the Company’s Current Report on Form 8-K filed on October 20, 2011.

(16)   Incorporated by reference to the Company’s Current Report on Form 8-K filed on April 3, 2013.

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Commitments and Contingent Liabilities

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

11. Commitments and Contingent Liabilities

Operating Leases

During 2011, the Company entered into a one-year lease agreement for a corporate apartment effective May 31, 2011. The monthly lease rate of $2,850 is in effect for the full term of the agreement.  After the initial term of the lease, the agreement converted to a month to month lease.  Subsequent to December 31, 2012, the Company gave notice of early termination and the lease expired on March 31, 2013. 

On June 15,2011, the Company entered into a lease agreement for approximately 28,000 square feet of office and storage space with an entity effective July 1, 2011. On August 29, 2011, the Company amended the agreement to expand to approximately 62,600 square feet of office and storage space effective November 1, 2011. The amended monthly lease rate of $9,224 is in effect through December 2013. Starting in 2014, the rent will increase to $10,671 per month through December 2015.  The remainder of the lease contract, the monthly lease payment is $11,975. 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 lease expires on January 1, 2017. Deferred rent payable was $39,101, and has been included in accrued expenses and other current liabilities on the consolidated balance sheet as of December 31, 2012.

The Company’s leasehold interest in its office and warehouse space was subject to a mechanic’s lien in favor of the contractor that assisted with the construction of the facility. The amount the Company owed to the contractor was in dispute. On June 14, 2012, the Company reached a written settlement and agreed to pay the contractor the total amount of $189,000 in three equal installments. The final payment was paid on November 2, 2012. The Company received a general release and release of mechanic’s lien from the contractor.

Future minimum payments, by year and in the aggregate, under operating leases as of December 31, 2012 are as follows:

For the years ending December 31,	Amount
2013	$	110,694
2014		128,049
2015		128,049
2016		143,699
Total future minimum lease payments	$	510,491

During the years ended December 31, 2012 and 2011, the Company recorded aggregate rent expense of $195,116 and $166,857, respectively.

Litigation

On November 29, 2011, NMN Advisors, Inc. (“Plaintiff”) filed a complaint against the Company alleging that it breached a consulting agreement. The complaint seeks damages of $70,000 plus pre-judgment interest. On February 6, 2012, the Company filed its answer to the complaint denying that the Company owes any amounts under the contract, and the Company also filed a cross-complaint against the plaintiff asserting a number of causes of action, including breach of contract. Plaintiff filed its answer to the Company cross-complaint on March 5, 2012. Both the Company and the Plaintiff agreed to attempt to resolve the dispute by court mediation and on August 21, 2012, the litigation was resolved by a negotiated settlement.  Such amount has been accrued in the accompanying consolidated balance sheet as of December 31, 2012.

On February 9, 2012, two of our former stockholders, Rock Castle and Jason Smith (“Plaintiffs”), filed suit against the Company in the Hamilton County, Ohio Court of Common Pleas, alleging that the Company had breached the terms of certain incentive options the Company granted to the Plaintiffs in connection with the Company’s now-terminated oral consulting arrangements with the Plaintiffs, by among other things, refusing Plaintiffs’ purported exercise of options to purchase 233,332 shares of the Company’s common stock at an exercise price of $2.00 per share in December 2011.  Plaintiffs have requested that, among other things, the court require the Company to permit the exercise of the 233,332 options.  Plaintiffs have also provided an expert report indicating damages of $2.086 million. Also named as defendants were two individuals, Michael Peppel and Gary Singer, whom Plaintiffs claim acted as agents for the Company in connection with its purchase of shares of its common stock from Plaintiffs in September 2011.  On April 26, 2013, Plaintiffs dismissed Mr. Singer from the lawsuit.  Trial of the case is currently scheduled for April of 2014.  The Company denies all of the Plaintiffs’ claims and intends to contest this matter vigorously.

On March 2, 2012, a former contractor of the Company filed suit against the Company in the Hamilton County, Ohio Court of Common Pleas, alleging that, among other things, the Company failed to pay amounts due on certain credit cards that were issued in plaintiff’s name but for which the Company agreed to assume financial responsibility. Although the Company denies any responsibility for the payments owed, the Company resolved this dispute by entering into a settlement agreement with the plaintiff, and the suit was voluntarily dismissed on May 30, 2012.

On October 9, 2012, American Express Travel Related Services Company, Inc. brought legal action against the Company in the Boone County, Kentucky Circuit Court. The action seeks to recover the unpaid balance on a credit card account in the amount of $87,029, plus interest and costs. The Company filed an answer in November 2012.  This litigation was resolved on July 10, 2013 by a negotiated settlement.  Such amount has been accrued in the accompanying consolidated balance sheet as of December 31, 2012.

On November 5, 2012, HD Smith, Inc., one of the Company’s vendors, (“Plaintiff”) filed a complaint against the Company alleging that it breached its vendor credit agreement. The Plaintiff is seeking damages of $170,316 plus pre-judgment interest and attorneys’ fees. This litigation was resolved on January 25, 2013, as amended on June 20, 2013, by a negotiated settlement.  Such amount has been accrued in the accompanying consolidated balance sheet as of December 31, 2012.

On March 13, 2013, a former vendor filed suit against the Company in the Hamilton County, Ohio Court of Common Pleas, alleging that the Company had breached its contract. The plaintiff is seeking damages of $17,800 plus pre-judgment interest and other costs and expenses. The Company answered the complaint and trial was set for June 2014.  This matter was resolved on June 20, 2013 by a negotiated settlement.  Such amount has been accrued in the accompanying consolidated balance sheet as of December 31, 2012.

On March 20, 2013, a complaint was filed in the Delaware Court of Chancery by two shareholders of the Company, HWH Lending, LLC and Milfam I L.P., seeking to compel the holding of an annual meeting of stockholders for the election of directors under Delaware law.  The Company filed an answer to the complaint on April 12, 2013.  On May 13, 2013, the Company publicly announced that the Board of Directors had set the date for the Company’s next annual meeting of stockholders as August 15, 2013 at 11:00 a.m. Eastern time.  In lieu of further litigation, on July 18, 2013, the parties submitted to the court a proposed order confirming August 15, 2013 as the annual meeting date and establishing certain procedures related to the annual meeting.  On July 18, 2013, the court entered the proposed order providing that (i) the Company shall notice and hold its annual meeting on August 15, 2013 for the election of directors and for the transaction of any other business properly brought before the meeting, and the date of the  meeting shall not be adjourned, continued or postponed prior to the election of directors absent an order of the court; (ii) the shares of the Company’s stock represented at the annual meeting, either in person or by proxy, and entitled to vote thereat shall constitute a quorum for purposes of the meeting, notwithstanding any contrary provision in the Company’s certificate of incorporation or Bylaws, and (iii) the record date for the determination of stockholders entitled to notice of and to vote at the annual meeting is July 1, 2013, and if the annual meeting noticed for August 15, 2013 is adjourned, continued or postponed prior to the election of directors pursuant to an order of the court, the Company may set a new record date in accordance with the Company’s Bylaws.

On April 23, 2013, the Company’s Board of Directors formed a Special Committee, chaired by Youssef Bennani, a director and Chairman of the Company’s Audit Committee, to investigate certain stockholder demands.  Since March 1, 2013, the Company has received three letters from stockholders alleging certain breaches of fiduciary duties by directors of the Company and demanding that the Company commence investigations of the alleged conduct.  On March 1, 2013, the Company received a letter on behalf of the holders of the Company’s Series B Preferred Stock (“Preferred Holders”) alleging that a convicted felon appears to be a consultant to the Company, owes the Company money, and exercises control over the Company.  On March 8, 2013, the Company received a letter on behalf of stockholder Wayne Corona alleging that two directors, Matthew Stecker and John Backus, breached their fiduciary duties and demanding that the Company investigate legal claims against those directors.  The letter alleges that the director designee of the holders of the Company’s Series B Preferred Stock and the director designee of New Atlantic Ventures Fund III, L.P. (“NAV”) acted in concert to attempt to scuttle the Company’s recent financing plan.  The letter also alleged that the director designee of the Preferred Holders and the director designee of NAV sought to prevent the Company from paying back its lenders in 2010 and 2011.  On March 18, 2013, the Company received a letter on behalf of the two directors denying the allegations and stating there was no proper basis for launching an investigation.  On March 27, 2013, a letter on behalf of Messrs. Backus and Stecker, in their capacities as directors and stockholders, demanded that the Company (i) investigate alleged breaches of confidentiality and fiduciary duties by the Company’s President and CEO and two other directors in connection with the purported stockholder demand letter of Mr. Corona dated March 8, 2013, and (ii) assert related claims against those individuals.  The letter also asserted that the director constituting the special committee, Youssef Bennani, is subject to alleged conflicts of interest that disqualify him from serving on any proposed special committee to evaluate the pending stockholder demands.  The Special Committee has retained an independent law firm to conduct the investigation and advise the Special Committee.

On April 30, 2013, a purported class-action complaint was filed against the Company in the United States District Court for the Northern District of Illinois.  The complaint alleges that the Company sent an unsolicited advertising fax to Glen Ellyn Pharmacy, the named plaintiff, and other recipients.  The complaint alleges that such a fax violates the federal Telephone Consumer Protection Act (the “TCPA”), the Illinois Consumer Fraud Act and Illinois common law.  Under the TCPA, recipients of unsolicited fax advertisements are entitled to damages of up to $500 per fax for inadvertent violations and up to $1,500 for knowing or willful violations.  At the time of filing the complaint, the plaintiff also filed a motion asking the Court to certify a class of persons and entities who were sent advertising faxes by the Company which did not contain an opt out notice.  On June 19, 2013, the plaintiff filed an amended class-action complaint which withdrew the two counts for alleged violations of the Illinois Consumer Fraud Act and the common law tort of conversion.  The amended complaint eliminates claims for damages under Illinois law and leaves only a single count for an alleged violation of the TCPA.  The Company filed an answer to the amended complaint on July 8, 2013.  The District Court has not established or recognized any class.  The Company is vigorously contesting class certification and liability, and will continue to evaluate its defenses.  However, it is impossible to predict with certainty the outcome of any litigation, and the Company can offer no assurance on whether the Company will be successful in any such litigation.

On May 7, 2013, a putative stockholder derivative action was filed in the Court of Chancery of the State of Delaware against certain directors and the chief executive officer of the Company and against the Company, as a nominal defendant.  The complaint alleges claims for breach of fiduciary duty, entrenchment and corporate waste arising out of the alleged failure to conduct annual meetings, SEC filing obligations, advances to a former employee and a $500,000 secured loan to the Company which the entire board of directors approved.  The derivative complaint seeks unspecified compensatory damages and other relief.  The Company and the individual defendants believe that the allegations stated in the complaint are without merit and they intend to defend themselves vigorously against the allegations.

On May 15, 2013, a former consultant filed suit in Boone County, Kentucky Circuit Court alleging breach of contract and unjust enrichment for unpaid consulting fees and expenses of approximately $27,000.  The Company was served with the lawsuit in June 2013 and the Company has not yet filed an answer to the complaint.

In the normal course of business the Company may be involved in legal proceedings, claims and assessments arising in the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. Legal fees for such matters are expensed as incurred and we accrue for adverse outcomes as they become probable and estimable. Currently, other than discussed above, the Company is not involved in any such material matters.

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Concentrations (Details Narrative)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
custom:Customer1Member
Concentration Percentage	18.00%	55.00%
custom:Customer2Member
Concentration Percentage	14.00%	16.00%
custom:Customer3Member
Concentration Percentage		11.00%
custom:Vendor1Member
Concentration Percentage	28.00%	38.00%
custom:Vendor2Member
Concentration Percentage	24.00%	11.00%

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Consolidated Statements of Operations (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Income Statement [Abstract]
Net sales	$ 11,081,429	$ 10,363,293
Cost of sales	5,913,977	5,845,525
Gross profit	5,167,452	4,517,768
Operating expenses:
Selling, general and administrative expenses	9,261,523	9,246,431
Impairment of intangible assets	396,298
Total operating expenses	9,657,821	9,246,431
Loss from operations	(4,490,369)	(4,728,663)
Other income (expense):
Gain on settlement of accounts payable		32,210
Interest income	6,103	4,166
Interest expense	(1,095,881)	(1,021,112)
Other income	5,372	1,200
Total other expense	(1,084,406)	(983,536)
Net loss	(5,574,775)	(5,712,199)
Series B convertible contractual dividends	(261,084)	(244,001)
Series C redeemable deemed dividends	(433,606)	(92,916)
Loss attributable to common stockholders	$ (6,269,465)	$ (6,049,116)
Per share data:
Net loss – basic and diluted	$ (0.51)	$ (0.55)
Contractual dividends	$ (0.02)	$ (0.02)
Deemed dividends	$ (0.04)	$ (0.01)
Net loss attributable to common stockholders - basic and diluted	$ (0.57)	$ (0.58)
Weighted average number of common shares outstanding - basic and diluted	11,003,595	10,397,667

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Property and Equipment

12 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Abstract]

Property and Equipment

4. Property and Equipment

Property and equipment consist of the following:

	December 31,						Estimated
	2012			2011			Useful Life
Computer software	$	230,299		$	230,299		5  years
Equipment		544,108			573,134		15  years
Office furniture and equipment		95,754			95,754		7 years
Computer hardware		27,746			27,746		5 years
Leasehold improvements		303,318			303,318		(a)
Total		1,201,225			1,230,251
Less: accumulated depreciation and amortization		(433,204	)		(286,402	)
Property and equipment, net	$	768,021		$	943,849

(a)   Lesser of useful life or initial term of lease 

The cost basis of the equipment was adjusted during 2012 due to the restructuring of an equipment lease payable (see Note 9). Depreciation and amortization expense for the above assets for the years ended December 31, 2012 and 2011 was $146,802 and $96,683, respectively.  

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2012

Accounting Policies [Abstract]

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

	December 31,
	2012		2011
Options		2,183,899		2,165,925
Warrants		592,846		2,916,590
Series B Convertible Preferred Stock		1,973,425		1,844,312
Convertible Promissory Notes		613,265		529,100
Totals		5,363,435		7,455,927

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Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Deferred tax assets:
Net operating loss carryforwards	$ 4,465,161	$ 2,954,459
Stock-based compensation	258,743	164,841
Inventory reserves	54,000	58,500
Allowance for bad debt	87,405	252,993
Charitable contribution carryforwards	5,630	4,306
Accruals	24,775
Total deferred tax assets	4,895,714	3,435,099
Valuation allowance	(4,876,671)	(3,386,076)
Deferred tax assets, net of valuation allowance	19,043	49,023
Deferred tax liabilities:
Property and equipment	(19,043)	(49,023)
Net deferred tax assets
Change in valuation allowance	$ 1,490,595	$ 1,932,827

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Concentrations

12 Months Ended

Dec. 31, 2012

Risks and Uncertainties [Abstract]

Concentrations

12. Concentrations

The Company maintains deposits in financial institutions which are insured by the Federal Deposit Insurance Corporation (“FDIC”). At various times, the Company has deposits in these financial institutions in excess of the amount insured by the FDIC.

As of December 31, 2012, two companies represented approximately 18% and 14% of accounts receivable.  As of December 31, 2011, three companies represented approximately 55%, 16% and 11% of accounts receivable.

During the year ended December 31, 2012, two vendors represented 28% and 24% of total purchases. During the year ended December 31, 2011, two vendors represented 38% and 11% of total purchases.

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Stockholders' Deficiency - Schedule of Warrant Activity (Details) (USD $)	12 Months Ended
	Dec. 31, 2012 Y	Dec. 31, 2011
Equity [Abstract]
Warrants outstanding at January 1	2,916,590	1,915,340
Warrants outstanding at January 1, Per Share	$ 2.67	$ 2.53
Issued	30,000	1,020,000
Issued, Per Share	$ 4.95	$ 2.9
Expired
Expired, Per Share
Exercised	2,353,744	(18,750)
Exercised, Per Share	$ 2.61	$ 1.6
Warrants outstanding at December 31,	592,846	2,916,590
Warrants outstanding at December 31, Per Share	$ 3.01	$ 2.67
Warrants outstanding at December 31, Term	3.98
Warrants outstanding at December31, Value	$ 755,558
Warrants exercisable at December 31	312,846
Warrants exercisable at December 31, Per Share	$ 2.91
Warrants exercisable at December 31, 2012	3.67
Warrants exercisable at December 31, Value	$ 418,058

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Income Taxes - Schedule of Tax Rate Reconciliation (Details)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
US federal statutory rate	(34.00%)	(34.00%)
State tax rate, net of federal benefit	(2.00%)	(5.00%)
- Stock based compensation	2.90%	3.60%
- Write-off and amortization of intangible asset	3.90%	0.60%
- Other	2.40%	1.00%
Change in valuation allowance	26.80%	33.80%
Income tax provision (benefit)	0.00%	0.00%

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Intangible Assets - Summary of Intangible Assets (Details) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Goodwill and Intangible Assets Disclosure [Abstract]
Customer relationships		$ 693,335
Less: accumulated amortization		(90,794)
Intangible assets, net		$ 602,541

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Accrued Expenses and Other Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2012

Payables and Accruals [Abstract]

Schedule of Accrued Expenses and Other Current Liabilities

	December 31,
	2012		2011
Deferred rent	$	39,100	$	31,947
Advertising		75,000		-
Salaries and benefits		166,118		-
Professional fees		81,872		49,000
Dividend payable		261,084		244,001
Accrued interest		410,101		176,902
Due to investors (1)		850,002		-
Other		8,159		47,161
Total	$	1,891,436	$	549,011

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Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Intangible Assets

	December 31, 2011
Customer relationships	$	693,335
Less: accumulated amortization		(90,794	)
Intangible assets, net	$	602,541,

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Stockholders' Deficiency - Schedule of Options Outstanding (Details) (USD $)	12 Months Ended
	Dec. 31, 2012 Y	Dec. 31, 2011
Equity [Abstract]
Options outstanding at January 1	2,165,925	1,996,300
Options outstanding at January 1, Per Share	$ 2.89	$ 2.14
Options outstanding at January 1, Value
Granted	416,000	750,000
Granted, Per Share	$ 5.39	$ 4.08
Expired
Canceled	(166,669)	(492,500)
Canceled, Per Share	$ 4.03	$ 1.96
Exercised	(231,357)	(87,875)
Exercised, Per Share	$ 1.62	$ 0.8
Options outstanding at December 31	2,183,899	2,165,925
Options outstanding at December 31, Per Share	$ 3.42	$ 2.89
Options outstanding at December 31, Term	5.97
Options outstanding at December 31, Value	2,348,938
Options exercisable at December 31	1,133,898
Options exercisable at December 31, Per Share	$ 2.5
Options exercisable at December 31, Term	4.79
Options exercisable at December 31, Value	$ 2,001,437

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Summary of Significant Accounting Policies - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Accounting Policies [Abstract]
Options	$ 2,183,899	$ 2,165,925
Warrants	592,846	2,916,590
Series B Convertible Preferred Stock	1,973,425	1,844,312
Convertible Promissory Notes	613,265	529,100
Totals	$ 5,363,435	$ 7,455,927

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Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Payables and Accruals [Abstract]
Deferred rent	$ 39,100	$ 31,947
Advertising	75,000
Salaries and benefits	166,118
Professional fees	81,872	49,000
Dividend payable	261,084	244,001
Accrued interest	410,101	176,902
Due to investors (1)	850,002
Other	8,159	47,161
Total	$ 1,891,436	$ 549,011

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Stockholders' Deficiency - Schedule of Warrants Outstanding (Details) (USD $)	Dec. 31, 2012
$2.90 - 300
Number Outstanding	562,846
Weighted Average Remaining Contractual Term	3.67
Weighted Average Exercise Price	$ 2.91
Number Exercisable	312,846
Weighted Average Exercise Price	$ 2.91
$3.01 - 4.95
Number Outstanding	30,000
Weighted Average Remaining Contractual Term	9.79
Weighted Average Exercise Price	$ 4.95
Number Exercisable
Weighted Average Exercise Price
$2.90 - 4.95
Number Outstanding	592,846
Weighted Average Remaining Contractual Term	3.98
Weighted Average Exercise Price	$ 3.01
Number Exercisable	312,846
Weighted Average Exercise Price	$ 2.91

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Schedule of Income Tax Provision

	For The Years Ended
	December 31,
	2012			2011
Federal:
Current	$	-		$	-
Deferred		(1,299,493	)		(1,685,029	)
State and local:
Current		-			-
Deferred		(191,102	)		(247,798	)
		(1,490,595	)		(1,932,827	)
Change in valuation allowance		1,490,595			1,932,827
Income tax provision (benefit)	$	-		$	-

Schedule of Deferred Tax Assets and Liabilities

	December 31,
	2012			2011
Deferred tax assets:
Net operating loss carryforwards	$	4,465,161		$	2,954,459
Stock-based compensation		258,743			164,841
Inventory reserves		54,000			58,500
Allowance for bad debt		87,405			252,993
Charitable contribution carryforwards		5,630			4,306
Accruals		24,775			-
Total deferred tax assets		4,895,714			3,435,099
Valuation allowance		(4,876,671	)		(3,386,076	)
Deferred tax assets, net of valuation allowance		19,043			49,023
Deferred tax liabilities:
Property and equipment		(19,043	)		(49,023	)
Net deferred tax assets	$	-		$	-
Change in valuation allowance	$	1,490,595		$	1,932,827

Schedule of Tax Rate Reconciliation

	For The Years Ended
	December 31,
	2012			2011
US federal statutory rate		(34.0	%)		(34.0	%)
State tax rate, net of federal benefit		(2.0	%)		(5.0	%)
Permanent differences
- Stock based compensation		2.9	%		3.6	%
- Write-off and amortization of intangible asset		3.9	%		0.6	%
- Other		2.4	%		1.0	%
Change in valuation allowance		26.8	%		33.8	%
Income tax provision (benefit)		0.0	%		0.0	%

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Subsequent Events (Details Narrative) (USD $)	12 Months Ended		0 Months Ended							1 Months Ended		5 Months Ended			1 Months Ended	0 Months Ended	1 Months Ended	0 Months Ended	6 Months Ended	1 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Apr. 11, 2013 Private Placement [Member]	Mar. 13, 2013 Private Placement [Member]	Feb. 28, 2013 Private Placement [Member]	Feb. 06, 2013 Private Placement [Member]	Mar. 13, 2013 Private Placement [Member] custom:NotesPayableRelatedPartyMember	Mar. 13, 2013 Private Placement [Member] custom:AccountsPayableRelatedPartyMember	Jun. 30, 2013 Warrants [Member] (Deprecated 2012-01-31)	Jul. 31, 2013 Warrants [Member] (Deprecated 2012-01-31)	Jun. 18, 2013 Warrants [Member] (Deprecated 2012-01-31)	May 31, 2013 Warrants [Member] (Deprecated 2012-01-31)	May 31, 2013 Warrants [Member] (Deprecated 2012-01-31) custom:Price025Member	May 31, 2013 Warrants [Member] (Deprecated 2012-01-31) custom:Price035Member	Jun. 19, 2013 custom:OptionsMember	Feb. 28, 2013 custom:OptionsMember	Feb. 22, 2013 custom:SettlementMember	Jun. 04, 2013 custom:PagosaMember	Jun. 30, 2013 custom:RelatedPartyMember	Mar. 28, 2013 custom:NotesPayableMember
Proceeds from Private Placement			$ 125,000			$ 3,376,975
Units Sold in Private Placement			125,000			3,376,975
Price per Unit			$ 1.00	$ 1.00	$ 4.50	$ 1.00
Amount Received From Officer						500,000
Shares per Unit			1	1		1
Warrants per Unit			3	2.75		3
Warrant Exercise Price			$ 0.25	$ 0.25	$ 1.00	$ 0.25			$ 0.25	$ 0.25	$ 1.00		$ 0.25	$ 0.35						$ 0.35
Conditional Purchase Price per Unit						$ 1.00
Conditional Minimum Closing Stock Price						$ 0.25
Warrants Granted					408,345															750,000
Amount of Debt Converted							761,000	72,000
Units Converted				833,000							159,352
Shares Issued upon Exercise									185,138	130,053		9,390,257	(8,816,431)	(573,826)
Warrants Exercised on Cashless Basis									215,000	150,000	408,345	11,125,744
Options Granted	416,000	750,000													100,000	330,500
Option Exercise Price	$ 5.39	$ 4.08													$ 1.45	$ 1.60
Value Options Granted															109,600	395,041
Proceeds from Settlement																	50,000
Accounts Receivable																	424,525
Write-Off																	374,525
Lease Expense	195,116	166,857																1,000
Proceeds from Related Party Debt	605,000	560,000																	61,000
Repayments of Related Party Debt	293,812	106,188																	102,000
Proceeds from Debt																				$ 500,000
Interest Rate of Debt																				4.25%
Interest Rate at Default																				5.00%

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Equipment Lease Payable - Schedule of Future Minimum Lease Payments (Details) (USD $)	Dec. 31, 2012
Debt Disclosure [Abstract]
2013	$ 76,757
2014	76,727
2015	75,892
2016	48,949
Total	278,325
Less: amount representing interest	(62,917)
Present value of future lease payments	$ 215,408

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Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Abstract]

Property and Equipment

	December 31,						Estimated
	2012			2011			Useful Life
Computer software	$	230,299		$	230,299		5  years
Equipment		544,108			573,134		15  years
Office furniture and equipment		95,754			95,754		7 years
Computer hardware		27,746			27,746		5 years
Leasehold improvements		303,318			303,318		(a)
Total		1,201,225			1,230,251
Less: accumulated depreciation and amortization		(433,204	)		(286,402	)
Property and equipment, net	$	768,021		$	943,849

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Consolidated Statements of Cash Flows (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Statement of Cash Flows [Abstract]
Net loss	$ (5,574,775)	$ (5,712,199)
Provision for doubtful accounts	24,236	444,084
Provision for employee advance reserve	137,610
Provision for inventory reserve		150,000
Write-off of other current assets		100,000
Depreciation and amortization	353,045	248,398
Stock-based compensation	556,148	948,923
Amortization of deferred debt discount	807,766	889,186
Impairment of intangible assets	396,298
Gain on settlement of accounts payable		(32,210)
Gain on the sale of property and equipment		(6,788)
Accounts receivable	106,537	(60,186)
Inventories	158,313	(129,378)
Prepaid expenses and other current assets	4,688	(27,772)
Accounts payable – trade	1,447,180	747,674
Accounts payable – related parties	133,724	(218,649)
Accrued expenses and other current liabilities	501,319	98,904
Net cash used in operating activities	(947,911)	(2,560,013)
Acquisition of Hocks.com net assets		(200,000)
Acquisition of property and equipment		(452,322)
Change in restricted cash	(850,002)
Changes in employee advances	139,739	(247,278)
Proceeds from the return of property and equipment		15,732
Net cash used in investing activities	(710,263)	(883,868)
Principal payments on equipment leases payable	(54,722)
Proceeds from issuance of notes payable		3,000,000
Repayment of notes payable		(1,000,000)
Proceeds from exercise of common stock options	26,662	40,000
Proceeds from the sale of common stock	525,004	1,972,241
Repurchase of treasury stock		(3,419,715)
Proceeds from offering prior to reaching minimum offering amount	850,002
Proceeds from issuance of redeemable preferred stock		1,000,000
Proceeds from notes payable and other advances – related parties	605,000	560,000
Repayment of notes payable and other advances – related parties	(293,812)	(106,188)
Net cash provided by financing activities	1,658,134	2,046,338
Net decrease in cash	(40)	(1,397,543)
Cash - beginning of year	40	1,397,583
Cash - end of year		40
Interest	37,017	18,416
Taxes
Conversion of convertible notes into common stock		225,000
Common stock issued in connection with acquisition of Hocks.com		693,335
Issuance of Series B preferred stock for settlement of accrued dividends	244,001	33,992
Cashless exercise of warrants into common stock	1,466	14
Cashless exercise of options into common stock	156	32
Deferred debt discount – notes payable		1,131,303
Accrual of contractual dividends on Series B convertible preferred stock	261,084	244,001
Reclassification of accounts payable - trade to equipment lease payable	257,583
Purchase of equipment under capital lease obligation		12,547
Purchase of equipment for accounts payable		264,279
Redeemable Series C preferred stock discount		526,522
Deemed dividend – redeemable Series C preferred stock	433,606	92,916
Inventory		200,000
Customer relationships		693,335
Total fair value of assets acquired		893,335
Less: Cash paid to acquired inventory		(200,000)
Common stock issued to acquire Hocks.com		$ 693,335

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Going Concern and Management's Liquidity Plans

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements

Going Concern and Management's Liquidity Plans

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 December 31, 2012, the Company had a working capital deficiency of $8,395,171 and an accumulated deficit of $20,828,674.  During the year ended December 31, 2012, the Company incurred a net loss of $5,574,775 and used cash in operating activities of $947,911. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

Subsequent to December 31, 2012, the Company (a) raised $3,501,975 in an equity financing, substantially all of which was raised in February 2013, and substantially all of the proceeds were used to satisfy the Company’s obligations under certain notes and convertible notes aggregating $3,000,000 of principal, plus accrued interest, which were previously in default; (b) raised $500,000 in a debt financing; (c) converted $833,000 of obligations to related parties into equity instruments; and (d) continued to incur net losses, use cash in operating activities and experience cash and working capital constraints. See Note 16.

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 10). 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 those assets required to pay its debts as they come due and those assets required to continue as a going concern toward the redemption).

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 consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”), which contemplate 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 consolidated financial statements do not necessarily represent realizable or settlement values. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

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Intangible Assets

12 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

5. Intangible Assets

The following table is a summary of intangible assets at December 31, 2011:

	December 31, 2011
Customer relationships	$	693,335
Less: accumulated amortization		(90,794	)
Intangible assets, net	$	602,541,

The Company’s amortizable intangible assets consisted of customer relationships which resulted from the acquisition of Hocks.com on February 14, 2011 (see Note 15).  Customer relationships were previously amortized on a straight-line basis over an estimated useful life of five years. During the year ended December 31, 2012, the Company performed a review of its intangible assets for impairment because the operations within the Company’s Hocks division experienced a significant and sustained decline during the year ended December 31, 2012, indicating that the carrying amount of the customer relationships may not be recoverable. The review, which included estimating the future undiscounted cash flows of the customer relationships over the remaining useful life, indicated that the carrying value of the Company’s intangible assets exceeded the estimated undiscounted future cash flows and should be written off.  The Company recorded the corresponding impairment of $396,298.  Amortization expense for the years ended December 31, 2012 and 2011 was $206,243 and $90,974, respectively.

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2012

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

3. Summary of Significant Accounting Policies

Principles of Consolidation

The 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.

Use of Estimates

The preparation of consolidated financial statements in conformity with 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 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 and the valuation of acquired assets.

Reclassifications

Certain accounts in the prior period consolidated financial statements have been reclassified for comparison purposes to conform to the presentation of the current period consolidated financial statements.  These reclassifications had no effect on the previously reported net loss.

Cash

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. As of December 31, 2012 and 2011, the Company does not have any cash equivalents. As of December 31, 2012 and 2011, accounts payable included approximately $106,000 and $240,000, respectively, of checks that had been issued but had not cleared the bank.

Restricted Cash

Restricted cash represents cash received from accredited investors in connection with an ongoing equity offering which was being held in a bank escrow account until the offerings’ minimum dollar threshold was met (see Note 16).

Allowance for Doubtful Accounts Receivable

Accounts receivable are shown net of an allowance for doubtful accounts of $106,292 and $564,084 as of December 31, 2012 and 2011, respectively. The Company’s management has established an allowance for doubtful accounts sufficient to cover probable and reasonably estimable losses. The nature of the business is that the majority of the payments are made before the product is sent.  If the financial conditions of customers were to materially deteriorate or the nature of the business was to change from prepayment to post payment an increase in the allowance amount could be required. The allowance for doubtful accounts considers a number of factors, including collection experience, current economic trends, estimates of forecasted write-offs, aging of the accounts receivable, and other factors.

Inventory

Inventories consist of finished goods and are valued at the lower of cost or market with cost determined using the first-in, first-out method and with market defined as the lower of replacement cost or realizable value. As part of the valuation process, inventory reserves are established to state excess and slow-moving inventory at their estimated net realizable value.

Property and Equipment

Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Expenditures for maintenance and repairs, which do not extend the economic useful life of the related assets, are charged to operations as incurred. Gains or losses on disposal of property and equipment are reflected in the statements of operations in the period of disposal.

Intangible Assets

Intangible assets are recorded at cost except for assets acquired using acquisition accounting, which are initially recorded at their estimated fair value.  Intangible assets with definite lives were comprised of customer relationships. Amortization is computed on a straight-line basis over the estimated useful lives of the intangible assets.

Impairment of Long-Lived Assets

The Company reviews the carrying value of intangibles and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets is measured by comparing the carrying amount of the asset or asset group to the undiscounted cash flows that the asset or asset group is expected to generate. If the undiscounted cash flows of such assets are less than the carrying amount, the impairment to be recognized is measured by the amount by which the carrying amount of the property, if any, exceeds its fair value (see Note 5).

Website Development Costs

During the year ended December 31, 2011, the Company recorded an expense of $60,921, relating to the amortization of website development costs. The Company amortized the website development costs on a three year straight-line basis. As of December 31, 2011, website development costs were fully amortized.

Shipping and Handling Costs

The Company policy is to provide free standard shipping and handling for most orders shipped during the year. Shipping and handling costs incurred are recognized in selling, general and administrative expenses. Such amounts aggregated $1,178,471 and $1,077,070 for the years ended December 31, 2012 and 2011 respectively.

In certain circumstances, shipping and handling costs are charged to the customer and recognized in net sales. The amounts recognized for the years ended December 31, 2012 and 2011 were $396,668 and $337,982, respectively.

Fair Value of Financial Instruments

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  These fair value measurements apply to all financial instruments that are measured and reported on a fair value basis. 

            Based on the observability of the inputs used in the valuation techniques, financial instruments are categorized according to the fair value hierarchy, which ranks the quality and reliability of the information used to determine fair values.  Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories:

Level 1 - Observable inputs such as quoted prices in active markets. 

Level 2 - Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. 

Level 3 - Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. 

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy.  In such cases, the assignment of an asset or liability within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.  The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

The carrying value of financial instruments included in working capital approximate fair value because of the relatively short maturity of these instruments. The convertible debt and notes payable approximate fair value because the terms are substantially similar to comparable debt in the marketplace.

Income Taxes

Deferred tax assets and liabilities are determined on the basis of the difference between the tax basis of assets and liabilities and their respective financial reporting amounts (“temporary differences”) at enacted tax rates in effect for the years in which the temporary differences are expected to reverse. 

GAAP prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.

Management has evaluated and concluded that there were no material uncertain tax positions requiring recognition in the Company’s financial statements as of December 31, 2012 and 2011. The Company does not expect any significant changes in the unrecognized tax benefits within twelve months of the reporting date.

The Company classifies interest expense and any related penalties related to income tax obligations as a component of income tax expense. No interest or penalties have been recognized during the years ended December 31, 2012 and 2011.

Debt Discounts

            The Company records, as a discount to notes and convertible notes, the relative fair value of warrants issued in connection with the issuances and the intrinsic value of any conversion options based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized to interest expense using the interest method over the earlier of the term of the related debt or their earliest date of redemption.

Revenue Recognition

Revenues for the sales of products are recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed and determinable and collectability is reasonably assured.

 Advertising

The Company expenses all advertising costs as incurred.  Advertising expense for the years ended December 31, 2012 and 2011 were $587,346 and $865,946, respectively.

 Sales Taxes

The Company accounts for sales taxes imposed on the goods and services it provides on a net basis in the statements of operations, such that they are not grossed up within net sales and cost of sales.

Net Loss Per Share of Common Stock

Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period.  Diluted net 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 loss per share if their inclusion would be anti-dilutive and consist of the following:

	December 31,
	2012		2011
Options		2,183,899		2,165,925
Warrants		592,846		2,916,590
Series B Convertible Preferred Stock		1,973,425		1,844,312
Convertible Promissory Notes		613,265		529,100
Totals		5,363,435		7,455,927

Stock-Based Compensation

Stock-based compensation expense for all stock-based payment awards is based on the estimated fair value of the award. For employees and directors, the award is measured on the grant date.  For non-employees, the award is measured on the grant date and is then remeasured at each vesting date and financial reporting date.  The Company recognizes the estimated fair value of the award as compensation cost over the requisite service period of the award, which is generally the option vesting term.  The Company generally issues new shares of common stock to satisfy option and warrant exercises.

Preferred Stock

Preferred shares subject to mandatory redemption (if any) are classified as liability instruments and are measured at fair value. The Company classifies conditionally redeemable preferred shares, which includes preferred shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control, as temporary equity. At all other times, the Company classifies its preferred shares in stockholders’ deficiency. 

Convertible Instruments

GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. An exception to this rule is when the host instrument is deemed to be conventional, as that term is described under applicable GAAP.

When the Company has determined that the embedded conversion options should not be bifurcated from their host instruments, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note.  Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. The Company also records, when necessary, deemed dividends for the intrinsic value of conversion options embedded in preferred shares based upon the differences between the fair value of the underlying common stock at the commitment date of the transaction and the effective conversion price embedded in the preferred shares.

Common Stock Warrants and Other Derivative Financial Instruments

The Company classifies as equity any contracts that (i) require physical settlement or net-share settlement or (ii) provide the Company with a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement) providing that such contracts are indexed to the Company's own stock. The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the Company’s control) or (ii) gives the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). The Company assesses classification of its common stock purchase warrants and other free standing derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required.

The Company evaluated its free standing warrants to purchase common stock to assess their proper classification in the balance sheet as of December 31, 2012 and 2011 using the applicable classification criteria enumerated under GAAP and determined that the common stock purchase warrants contain fixed settlement provisions. 

Recently Issued Accounting Pronouncements

In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04, “Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs." This ASU addresses fair value measurement and disclosure requirements within Accounting Standards Codification ("ASC") Topic 820 for the purpose of providing consistency and common meaning between U.S. GAAP and IFRSs. Generally, this ASU is not intended to change the application of the requirements in Topic 820. Rather, this ASU primarily changes the wording to describe many of the requirements in U.S. GAAP for measuring fair value or for disclosing information about fair value measurements. This ASU is effective for periods beginning after December 15, 2011 and did not have a material impact on the Company’s consolidated financial statements or disclosures.

In April 2013, the FASB issued ASU No. 2013-07, “Presentation of Financial Statements (Topic 205) - Liquidation Basis of Accounting." This ASU addresses the requirements and methods of applying the liquidation basis of accounting and the disclosure requirements within ASC Topic 205 for the purpose of providing consistency between the financial reporting of U.S. GAAP liquidating entities. Generally, this ASU provides guidance for the preparation of financial statements and disclosures when liquidation is imminent. This ASU is effective for periods beginning after December 15, 2013 and would only have an impact on the Company’s consolidated financial statements or disclosures if liquidation of the Company became imminent. 

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Convertible Notes Payable (Details Narrative) (USD $)	6 Months Ended	12 Months Ended		0 Months Ended	1 Months Ended	12 Months Ended
	Jul. 17, 2013	Dec. 31, 2012	Dec. 31, 2011	Nov. 08, 2010 custom:LoanAgreement2010Member	Feb. 28, 2013 custom:LoanAgreement2010Member	Dec. 31, 2012 custom:LoanAgreement2010Member	Dec. 31, 2011 custom:LoanAgreement2010Member
Short Term Debt Exchanged				$ 1,015,000
Increase in Convertible Prommisory Notes				1,000,000
Debt Interest				7.00%
Effective Rate				47.00%
Conversion Price				$ 9.45
Warrants Issued				1,271,590
Exercise Price				$ 3.00
Deferred Debt Discount				660,930
Debt Discount Amortization		807,766	889,186			275,388	324,966
Repayment of Convertible Debt					1,000,000
Debt Converted Amount	$ 833,000						$ 225,000
Debt Converted Shares							144,618

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Equipment Lease Payable (Tables)

12 Months Ended

Dec. 31, 2012

Debt Disclosure [Abstract]

Schedule of Future Minimum Lease Payments

For the years ending December 31,	Lease payments
2013	$	76,757
2014		76,727
2015		75,892
2016		48,949
Total		278,325
Less: amount representing interest		(62,917	)
Present value of future lease payments	$	215,408

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Acquisition of Hocks (Tables)

12 Months Ended

Dec. 31, 2012

Business Combinations [Abstract]

Schedule of Assets Acquired

Inventory	$	200,000
Customer relationships		693,335
Net fair value of assets acquired	$	893,335

Schedule of Purchase Price Allocation

Common stock	$	693,335
Cash		200,000
Total purchase price consideration	$	893,335

Schedule of Pro-forma Results

	2011 (unaudited)
Revenue	$	10,697,247
Net loss	$	(5,719,396	)
Net loss attributable to common stockholders per share – basic and diluted	$	(6,056,313	)
Pro-forma basic and diluted net loss per common share	$	(0.55	)
Net loss attributable to common stockholders per share – basic and diluted	$	(0.58	)
Weighted average common shares outstanding – basic and diluted		10,418,215

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Property and Equipment (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Depreciation and Amortization	$ 353,045	$ 248,398
Property, Plant and Equipment
Depreciation and Amortization	$ 146,802	$ 96,683

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Income Taxes - Schedule of Income Tax Provision (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Federal:
Current
Deferred	(1,299,493)	(1,685,029)
State and local:
Current
Deferred	(191,102)	(247,798)
[us-gaap:DeferredIncomeTaxExpenseBenefit]	(1,490,595)	(1,932,827)
Change in valuation allowance	1,490,595	1,932,827
Income tax provision (benefit)

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Stockholders' Deficiency (Details Narrative) (USD $)	12 Months Ended						1 Months Ended						12 Months Ended		1 Months Ended									12 Months Ended						0 Months Ended	12 Months Ended		13 Months Ended		1 Months Ended			12 Months Ended			1 Months Ended	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012 custom:StockOptionGrantsMember	Dec. 31, 2011 custom:StockOptionGrantsMember	Dec. 31, 2011 custom:StockOptionGrantsMember custom:EmployeesDirectorsMember	Dec. 31, 2011 custom:StockOptionGrantsMember custom:ConsultantsMember	Oct. 31, 2012 custom:StockOptionGrantsMember Officer [Member]	Aug. 31, 2011 custom:StockOptionGrantsMember Officer [Member]	Mar. 31, 2012 custom:StockOptionGrantsMember custom:FourDirectorsMember	Oct. 31, 2012 custom:StockOptionGrantsMember custom:EmployeesMember	Mar. 31, 2012 custom:StockOptionGrantsMember custom:EmployeesMember	May 31, 2012 custom:StockOptionExercisesMember	Dec. 31, 2012 custom:StockOptionExercisesMember	Dec. 31, 2011 custom:StockOptionExercisesMember	May 31, 2012 custom:StockOptionExercisesMember custom:Price280Member	May 31, 2012 custom:StockOptionExercisesMember custom:Price360Member	Jan. 31, 2012 custom:StockOptionExercisesMember custom:FormerOfficerMember	Nov. 30, 2011 custom:StockOptionExercisesMember custom:FormerOfficerMember	Jul. 31, 2011 custom:StockOptionExercisesMember custom:FormerOfficerMember	Nov. 30, 2012 custom:StockOptionExercisesMember custom:FormerOfficerMember custom:Price080Member	Nov. 30, 2012 custom:StockOptionExercisesMember custom:FormerOfficerMember custom:Price250Member	Oct. 31, 2012 Class of Warrant or Right [Domain] custom:ConsultantsMember	Aug. 31, 2011 Class of Warrant or Right [Domain] custom:ConsultantsMember	Dec. 31, 2012 custom:WarrantsExercisedMember	Dec. 31, 2011 custom:WarrantsExercisedMember	Dec. 31, 2012 custom:WarrantsExercisedMember custom:Price160Member	Dec. 31, 2012 custom:WarrantsExercisedMember custom:Price300Member	Dec. 31, 2012 custom:WarrantsExercisedMember custom:Price290Member	Sep. 20, 2011 custom:IncentiveCompPlanMember	Oct. 04, 2012 Common Stock [Member]	Dec. 31, 2012 Common Stock [Member]	Dec. 31, 2011 Common Stock [Member]	Sep. 30, 2012 Treasury Stock [Member]	Dec. 31, 2012 Preferred Stock [Member] Series A Preferred Stock [Member]	Jan. 31, 2013 Preferred Stock [Member] Series B Preferred Stock [Member]	Jan. 31, 2012 Preferred Stock [Member] Series B Preferred Stock [Member]	Jan. 31, 2011 Preferred Stock [Member] Series B Preferred Stock [Member]	Dec. 31, 2012 Preferred Stock [Member] Series B Preferred Stock [Member]	Dec. 31, 2011 Preferred Stock [Member] Series B Preferred Stock [Member]	Jun. 10, 2013 Preferred Stock [Member] Series B Preferred Stock [Member]	Oct. 17, 2011 Preferred Stock [Member] Series C Preferred Stock [Member]	Dec. 31, 2012 Preferred Stock [Member] Series C Preferred Stock [Member]	Dec. 31, 2011 Preferred Stock [Member] Series C Preferred Stock [Member]	Oct. 31, 2012 Preferred Stock [Member] Series C Preferred Stock [Member]
Common Stock Authorized	50,000,000	50,000,000
Common Stock Par Value	$ 0.001	$ 0.001
Preferred Stock Authorized	1,000,000	1,000,000
Preferred Stock Par Value	$ 0.001	$ 0.001
Shares Issued																															116,670	597,542
Proceeds from Sale of Common Stock	$ 525,004	$ 1,972,241																													$ 525,004	$ 1,972,241
Exercise Price																						$ 4.95	$ 3.80		$ 1.60	$ 1.60		$ 3.00		$ 0.25											$ 2.90
Required Minimum Proceeds																														2,000,000
Proceeds from Private Placement																															850,002
Accrued Liabilities	8,159	47,161																													850,002
Treasury Stock Shares Acquired																																	1,179,212
Price per Share																																	$ 2.90
Treasury Stock Value																																	3,419,715
Designated Preferred Stock	200,000	200,000																																200,000
Series A Preferred Available to be Issued																																		44,443
Designated Preferred Stock	625,000	625,000																																				625,000
Preferred Dividend																																						7.00%
Accrued Dividends																																						261,084	244,001
Preferred Shared Issued																																			27,630	25,823	3,597
Preferred Stock Issued as Dividends Value																																			261,084	244,001	33,992
Preferred Stock Issued as Dividends Per Share																																			$ 0.66	$ 0.66	$ 0.09
Shares Issued upon Conversion																																								8.22
Series C Preferred Shares Designated	10,000	10,000																																							10,000
Price Per Share																																									$ 100
Proceeds from Sales of Preferred Stock																																									1,000,000
Warrants Issued	30,000	1,020,000																																							270,000
Relative Fair Value of Warrant																																									526,522
Required Private Placement Proceeds																																												4,000,000
Deemed Dividends	433,606	92,916																																								433,606	92,916
Increase in Shares																													2,881,425
Maiximum Shares Awarded per Individual																													250,000
Maximum Award Value 12 Month																													2,000,000
Maximum Award Value Greater Than 12 Months																													4,000,000
Options Granted					360,000	140,000	250,000	250,000	60,000	76,000	30,000
Option Vesting Period					3 years	3 years	3 years		3 years	3 years	3 years
Option Term					10 years	10 years	10 years	5 years	10 years	10 years	10 years
Lower Option Exercise Price					$ 3.30	$ 4.10
Upper Option Exercise Price					$ 4.62	$ 4.62
Value of Options Granted					1,106,879	399,989	1,182,925	891,569	391,028	359,609	195,514
Option Exercise Price	$ 5.39	$ 4.08					$ 4.95	$ 3.80	$ 6.99	$ 4.95	$ 6.99				$ 2.80	$ 3.60	$ 0.80	$ 0.80		$ 0.80	$ 2.50
Options Exercised	(231,357)	(87,875)													4,166	4,166	92,858	31,934	50,000	63,129											8,332	50,000
Option Exercise Price	$ 1.62	$ 0.8																	$ 0.80
Proceeds from Option Exercise												26,662							40,000
Value of Options Exercised	26,662	40,000											932,795	324,075																	8	50
Weighted Average Fair Value of Options Granted			$ 5.12	$ 3.20
Rate of Options Forfeiture			5.00%	0.00%
Share Based Compensation	556,148	948,923
Unamortized Share Based Compensation																											2,898,361
Share Based Compensation Expense Being Amortized																											2,006,792
Weighted Average Amortization Period																											2.7 Years
Performance Based Unamortized Share Based Compensation	891,569
Warrants Granted																						30,000	250,000
Warrant Exercise Price																						$ 4.95	$ 3.80		$ 1.60	$ 1.60		$ 3.00		$ 0.25											$ 2.90
Warrant Term																						3 years	5 years
Warrant Grant Date Fair Value																						115,049	576,840
Shares Issued for Warrants Exercised																								1,465,578	14,135	(471,628)		(701,388)
Warrants Exercised on a Cashless Basis																								2,353,744	18,750						1,465,578	14,135
Value of Warrants Exercised																								$ 10,316,439	$ 91,875

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Stockholders' Deficiency - Schedule of Fair Value Assumptions (Details)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Equity [Abstract]
Risk-free interest rate minimum	0.67%	0.88%
Risk-free interest rate maximum	1.04%	2.72%
Dividend yield
Expected volatility minimum	163.70%	133.40%
Expected volatility maximum	172.20%	185.20%
Expected life in years	6 years	6 years

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Consolidated Balance Sheets (Parenthetical) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Statement of Financial Position [Abstract]
Current Portion Convertible Notes Payable, deferred debt discount	$ 0	$ 275,388
Current Portion Notes Payable, deferred debt discount	44,363
Noncurrent Portion Notes payable, deferred debt discount		576,741
Noncurrent Portion Convertible Notes Payable, deferred debt discount
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized	50,000,000	50,000,000
Common stock, shares issued	13,030,097	11,283,830
Common stock, shares outstanding	11,851,185	10,104,618
Treasury stock, shares	1,179,212	1,179,212
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 issued
Series A Convertible preferred stock, shares outstanding
Series B Convertible preferred stock, shares designated	625,000	625,000
Series B Convertible preferred stock, shares issued	394,685	368,862
Series B Convertible preferred stock, shares outstanding	394,685	368,862
Series B Convertible preferred stock, aggregate liquidation preference	3,990,877	3,729,773
Redeemable Series C preferred stock, shares designated	10,000	10,000
Redeemable Series C preferred stock, shares issued	10,000	10,000
Redeemable Series C preferred stock, shares outstanding	10,000	10,000
Redeemable Series C preferred stock, aggregate liquidation preference	1,000,000	1,000,000
Discount on Redeemable Series C preferred stock		$ 433,606

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Notes Payable

12 Months Ended

Dec. 31, 2012

Debt Disclosure [Abstract]

Notes Payable

8. Notes Payable

On September 2, 2011, the Company entered into a Loan and Security Agreement (the “Notes”) with two lenders.  Under the terms of the Notes, the Company borrowed $1,500,000 from each lender, or a total of $3,000,000, at an interest rate of 7% per annum (effective interest rate of 34% per annum when taking into account the stated interest rate plus the impact of warrants given as additional compensation) each with a maturity date of January 15, 2013. The Company granted the lenders a first priority security interest in all of the Company’s assets, in order to secure the Company’s obligation to repay the loans. The loan agreement contains customary negative covenants restricting the Company’s ability to take certain actions without the lenders’ consent, including incurring additional indebtedness, transferring or encumbering assets, paying dividends or making certain other payments and acquiring businesses. In connection with the Notes, the Company granted each lender a warrant to purchase 250,000 shares of common stock at a purchase price of $2.90 per share with a term of five years.  The relative fair value of the warrants was estimated at $1,131,303 using the Black Scholes method which has been recorded as a debt discount against the Notes. The Company amortized $532,378 and $554,562 of the debt discount as interest expense using the effective interest method during the years ended December 31, 2012 and 2011, respectively. As of December 31, 2012, $44,363 of the debt discount associated with the Notes was unamortized. On October 18, 2011, the Company repaid each lender $500,000 in principal and $4,411 in interest such that as of December 31, 2012 and 2011, the Company had outstanding Loans aggregating $2,000,000. On January 15, 2013, the Company failed to repay the principal and accrued interest due on the Notes and was in default of its obligations. On February 1, 2013, the Company repaid the $2,000,000 principal of the Notes plus the outstanding accrued interest.

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Consolidated Statement of Changes in Shareholders Deficiency (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Balance, Amount	$ (2,856,928)	$ 1,040,587
Purchase of Treasury Stock, Amount		(3,419,715)
Stock-based Compensation	556,148	948,923
Issuance of Series B prefeered stock as payment-in-kind for dividend, Amount	244,001	33,992
Conversion of Convertible Debt into Common Stock, in Shares
Conversion of Convertible Debt into Common Stock, Amount		225,000
Debt Discount - Notes Payable		1,131,303
Cashless Exercise of Warrants into Common Stock, Amount
Exercise of Stock Options into Common Stock, in Shares	(231,357)	(87,875)
Exercise of Stock Options into Common Stock, Amount	26,662	40,000
Reclassification of Employee Advances Partially Collaterized by Common Stock	(156,468)
Provision to Establish Reserve Against Employee Advances	137,610
Common Stock Issued in Connection with Acquisition of Hocks.com, Amount		693,335
Contractual Dividends on Series B Convertible Preferred Stock	(261,084)	(244,001)
Contractual Dividends on Series C Convertible Preferred Stock	(433,606)	(92,916)
Issuance of Common Stock for Cash, net, Amount	525,004	1,972,241
Cashless Exercise of Options into Common Stock, Amount
Redeemable Series C Preferred Stock Discount		526,522
Net Loss	(5,574,775)	(5,712,199)
Balance, Amount	(7,793,436)	(2,856,928)
Convertible Series B Preferred Stock
Balance, in Shares	368,862	365,265
Balance, Amount	369	365
Issuance of Series B prefeered stock as payment-in-kind for dividend, in Shares	25,823	3,597
Issuance of Series B prefeered stock as payment-in-kind for dividend, Amount	26	4
Balance, in Shares	394,685	368,862
Balance, Amount	395	369
Common Stock [Member]
Balance, in Shares	11,283,830	10,278,934
Balance, Amount	11,284	10,279
Conversion of Convertible Debt into Common Stock, in Shares		144,618
Conversion of Convertible Debt into Common Stock, Amount		145
Cashless Exercise of Warrants into Common Stock, in Shares	1,465,578	14,135
Cashless Exercise of Warrants into Common Stock, Amount	1,466	14
Exercise of Stock Options into Common Stock, in Shares	8,332	50,000
Exercise of Stock Options into Common Stock, Amount	8	50
Common Stock Issued in Connection with Acquisition of Hocks.com, in Shares		166,667
Common Stock Issued in Connection with Acquisition of Hocks.com, Amount		167
Issuance of Common Stock for Cash, net, in Shares	116,670	597,542
Issuance of Common Stock for Cash, net, Amount	117	597
Cashless Exercise of Options into Common Stock, in Shares	155,987	31,934
Cashless Exercise of Options into Common Stock, Amount	156	32
Balance, in Shares	13,030,397	11,283,830
Balance, Amount	13,031	11,284
Additional Paid-In Capital
Balance, Amount	15,110,343	9,540,036
Stock-based Compensation		948,923
Issuance of Series B prefeered stock as payment-in-kind for dividend, Amount	243,975	33,988
Conversion of Convertible Debt into Common Stock, Amount		224,855
Debt Discount - Notes Payable		1,131,303
Cashless Exercise of Warrants into Common Stock, Amount	(1,466)	(14)
Exercise of Stock Options into Common Stock, Amount	26,654	39,950
Common Stock Issued in Connection with Acquisition of Hocks.com, Amount		693,168
Issuance of Common Stock for Cash, net, Amount	524,887	1,971,644
Cashless Exercise of Options into Common Stock, Amount	(156)	(32)
Redeemable Series C Preferred Stock Discount		526,522
Balance, Amount	16,460,385	15,110,343
Employee Advances
Reclassification of Employee Advances Partially Collaterized by Common Stock	(156,468)
Provision to Establish Reserve Against Employee Advances	137,610
Treasury Stock
Balance, in Shares
Balance, Amount
Purchase of Treasury Stock, in Shares		1,179,212
Purchase of Treasury Stock, Amount		(3,419,715)
Balance, in Shares	1,179,212	1,179,212
Balance, Amount	(3,419,715)	(3,419,715)
Accumulated Deficit
Balance, Amount	(14,559,209)	(8,510,093)
Contractual Dividends on Series B Convertible Preferred Stock	(261,084)	(244,001)
Contractual Dividends on Series C Convertible Preferred Stock	(433,606)	(92,916)
Net Loss	(5,574,775)	(5,712,199)
Balance, Amount	$ 20,828,674	$ (14,559,209)

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Income Taxes (Details Narrative) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Annual Limitation of Operating Losses	$ 1,000,000
Internal Revenue Service (IRS) [Member]
Net Operating Loss Carryforwards	12,600,000	8,000,000
State and Local Jurisdiction [Member]
Net Operating Loss Carryforwards	$ 3,000,000	$ 700,000

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Consolidated Balance Sheets (USD $)	Dec. 31, 2012	Dec. 31, 2011
Statement of Financial Position [Abstract]
Cash		$ 40
Restricted cash	850,002
Accounts receivable, net	89,853	220,626
Inventory, net	395,584	553,897
Employee advances	2,500	298,707
Prepaid expenses and other current assets	49,792	54,480
Total current assets	1,387,731	1,127,750
Property and equipment, net	768,021	943,849
Intangible assets, net		602,541
Total assets	2,155,752	2,674,140
Accounts payable – trade	2,973,774	1,787,224
Accounts payable – related parties	147,933	14,209
Accrued expenses and other current liabilities	1,891,436	549,011
Current portion of equipment lease payable	49,122	3,346
Convertible notes, net of deferred debt discount of $0 and $275,388 as of December 31, 2012 and 2011, respectively	1,000,000	724,612
Notes payable, net of deferred discount of $44,363 as of December 31, 2012	1,955,637
Note payable and other advances – related parties	765,000	453,812
Redeemable preferred stock - Series C (see below)	1,000,000
Total current liabilities	9,782,902	3,532,214
Notes payable, net of deferred debt discount of $576,741 as of December 31, 2011		1,423,259
Long term portion of equipment lease payable	166,286	9,201
Total long term liabilities	166,286	1,432,460
Total liabilities	9,949,188	4,964,674
Redeemable preferred stock – Series C; net of discount of $433,606 as of December 31, 2011; par value $0.001 per share; 10,000 designated Series C: 10,000 issued and outstanding as of December 31, 2012 and 2011 (aggregate liquidation preference of $1,000,000)		566,394
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; 394,685 and 368,862 shares issued and outstanding as of December 31, 2012 and 2011, respectively (aggregate liquidation preference of $3,990,877 and $3,729,973 as of December 31, 2012 and 2011, respectively)	395	369
Common stock – par value $0.001 per share; authorized 50,000,000 shares; 13,030,397 and 11,283,830 shares issued and 11,851,185 and 10,104,618 shares outstanding as of December 31, 2012 and 2011, respectively	13,031	11,284
Additional paid-in capital	16,460,385	15,110,343
Employee advances (see Note 13)	(18,858)
Treasury stock, at cost, 1,179,212 shares as of December 31, 2012 and 2011	(3,419,715)	(3,419,715)
Accumulated deficit	(20,828,674)	(14,559,209)
Total stockholders’ deficiency	(7,793,436)	(2,856,928)
Total liabilities and stockholders’ deficiency	$ 2,155,752	$ 2,674,140

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Commitments and Contingent Liabilities - Schedule of Future Minimium Lease Payments (Details) (USD $)	Dec. 31, 2012
Commitments and Contingencies Disclosure [Abstract]
2013	$ 110,694
2014	128,049
2015	128,049
2016	143,699
Total future minimum lease payments	$ 510,491

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Stockholders' Deficiency (Tables)

12 Months Ended

Dec. 31, 2012

Equity [Abstract]

Schedule of Fair Value Assumptions

	For the Year Ended December 31, 2012	For the Year Ended December 31, 2011
Risk-free interest rate	0.67% to 1.04%	0.88% to 2.72%
Dividend yield	None	None
Expected volatility	163.7%-172.2%	133.4% to 185.2%
Expected life in years	6.00	6.00

Schedule of Options

	Shares			Weighted Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Options outstanding at January 1, 2011		1,996,300		$	2.14
Granted		750,000		$	4.08
Expired		-			-
Canceled		(492,500	)	$	1.96
Exercised		(87,875	)	$	0.80
Options outstanding at January 1, 2012		2,165,925		$	2.89
Granted		416,000		$	5.39
Expired		--			--
Canceled		(166,669	)	$	4.03
Exercised		(231,357	)	$	1.62
Options outstanding at December 31, 2012		2,183,899		$	3.42		5.97	$	2,348,938
Options exercisable at December 31, 2012		1,133,898		$	2.50		4.79	$	2,001,437

Schedule of Options 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
	$0.80 - $2.20	$	1.58		485,900	$	1.58		2.7		485,900
	$2.21 - $3.80	$	3.18		955,333	$	2.90		5.8		514,666
	$3.81 - $6.99	$	4.92		742,666	$	4.31		8.3		133,332
	$0.80 - $6.99	$	3.42		2,183,899	$	2.50		4.8		1,133,898

Schedule of Warrant Activity

	Shares			Weighted Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Warrants outstanding at January 1, 2011		1,915,340		$	2.53
Issued		1,020,000		$	2.90
Expired		-			-
Exercised		(18,750	)	$	1.60
Warrants outstanding at January 1, 2012		2,916,590		$	2.67
Issued		30,000		$	4.95
Expired		-			-
Exercised		(2,353,744	)	$	2.61
Warrants outstanding at December 31, 2012		592,846		$	3.01	3.98	$	755,558
Warrants exercisable at December 31, 2012		312,846		$	2.91	3.67	$	418,058

Schedule of Warrants Outstanding

Range of Exercise		Number Outstanding		Weighted Average Remaining Contractual Term		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
	$2.90 – $3.00		562,846		3.67	$	2.91		312,846	$	2.91
	$3.01 – $4.95		30,000		9.79	$	4.95		-		-
	$2.90 – $4.95		592,846		3.98	$	3.01		312,846	$	2.91

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2012

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation

The 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.

Use of Estimates

Use of Estimates

The preparation of consolidated financial statements in conformity with 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 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 and the valuation of acquired assets.

Reclassifications

Reclassifications

Certain accounts in the prior period consolidated financial statements have been reclassified for comparison purposes to conform to the presentation of the current period consolidated financial statements.  These reclassifications had no effect on the previously reported net loss.

Cash

Cash

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. As of December 31, 2012 and 2011, the Company does not have any cash equivalents. As of December 31, 2012 and 2011, accounts payable included approximately $106,000 and $240,000, respectively, of checks that had been issued but had not cleared the bank.

Restricted Cash

Restricted Cash

Restricted cash represents cash received from accredited investors in connection with an ongoing equity offering which was being held in a bank escrow account until the offerings’ minimum dollar threshold was met (see Note 16).

Allowance for Doubtful Accounts Receivable

Allowance for Doubtful Accounts Receivable

Accounts receivable are shown net of an allowance for doubtful accounts of $106,292 and $564,084 as of December 31, 2012 and 2011, respectively. The Company’s management has established an allowance for doubtful accounts sufficient to cover probable and reasonably estimable losses. The nature of the business is that the majority of the payments are made before the product is sent.  If the financial conditions of customers were to materially deteriorate or the nature of the business was to change from prepayment to post payment an increase in the allowance amount could be required. The allowance for doubtful accounts considers a number of factors, including collection experience, current economic trends, estimates of forecasted write-offs, aging of the accounts receivable, and other factors.

Inventory

Inventory

Inventories consist of finished goods and are valued at the lower of cost or market with cost determined using the first-in, first-out method and with market defined as the lower of replacement cost or realizable value. As part of the valuation process, inventory reserves are established to state excess and slow-moving inventory at their estimated net realizable value.

Property and Equipment

Property and Equipment

Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Expenditures for maintenance and repairs, which do not extend the economic useful life of the related assets, are charged to operations as incurred. Gains or losses on disposal of property and equipment are reflected in the statements of operations in the period of disposal.

Intangible Assets

Intangible Assets

Intangible assets are recorded at cost except for assets acquired using acquisition accounting, which are initially recorded at their estimated fair value.  Intangible assets with definite lives were comprised of customer relationships. Amortization is computed on a straight-line basis over the estimated useful lives of the intangible assets.

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

The Company reviews the carrying value of intangibles and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets is measured by comparing the carrying amount of the asset or asset group to the undiscounted cash flows that the asset or asset group is expected to generate. If the undiscounted cash flows of such assets are less than the carrying amount, the impairment to be recognized is measured by the amount by which the carrying amount of the property, if any, exceeds its fair value (see Note 5).

Website Development Costs

Website Development Costs

During the year ended December 31, 2011, the Company recorded an expense of $60,921, relating to the amortization of website development costs. The Company amortized the website development costs on a three year straight-line basis. As of December 31, 2011, website development costs were fully amortized.

Shipping and Handling Costs

Shipping and Handling Costs

The Company policy is to provide free standard shipping and handling for most orders shipped during the year. Shipping and handling costs incurred are recognized in selling, general and administrative expenses. Such amounts aggregated $1,178,471 and $1,077,070 for the years ended December 31, 2012 and 2011 respectively.

In certain circumstances, shipping and handling costs are charged to the customer and recognized in net sales. The amounts recognized for the years ended December 31, 2012 and 2011 were $396,668 and $337,982, respectively.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  These fair value measurements apply to all financial instruments that are measured and reported on a fair value basis. 

            Based on the observability of the inputs used in the valuation techniques, financial instruments are categorized according to the fair value hierarchy, which ranks the quality and reliability of the information used to determine fair values.  Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories:

Level 1 - Observable inputs such as quoted prices in active markets. 

Level 2 - Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. 

Level 3 - Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. 

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy.  In such cases, the assignment of an asset or liability within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.  The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

The carrying value of financial instruments included in working capital approximate fair value because of the relatively short maturity of these instruments. The convertible debt and notes payable approximate fair value because the terms are substantially similar to comparable debt in the marketplace.

Income Taxes

Income Taxes

Deferred tax assets and liabilities are determined on the basis of the difference between the tax basis of assets and liabilities and their respective financial reporting amounts (“temporary differences”) at enacted tax rates in effect for the years in which the temporary differences are expected to reverse. 

GAAP prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.

Management has evaluated and concluded that there were no material uncertain tax positions requiring recognition in the Company’s financial statements as of December 31, 2012 and 2011. The Company does not expect any significant changes in the unrecognized tax benefits within twelve months of the reporting date.

The Company classifies interest expense and any related penalties related to income tax obligations as a component of income tax expense. No interest or penalties have been recognized during the years ended December 31, 2012 and 2011.

Debt Discounts

Debt Discounts

            The Company records, as a discount to notes and convertible notes, the relative fair value of warrants issued in connection with the issuances and the intrinsic value of any conversion options based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized to interest expense using the interest method over the earlier of the term of the related debt or their earliest date of redemption.

Revenue Recognition

Revenue Recognition

Revenues for the sales of products are recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed and determinable and collectability is reasonably assured.

Advertising

 Advertising

The Company expenses all advertising costs as incurred.  Advertising expense for the years ended December 31, 2012 and 2011 were $587,346 and $865,946, respectively.

Sales Taxes

 Sales Taxes

The Company accounts for sales taxes imposed on the goods and services it provides on a net basis in the statements of operations, such that they are not grossed up within net sales and cost of sales.

Net Loss Per Share of Common Stock

Net Loss Per Share of Common Stock

Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period.  Diluted net 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 loss per share if their inclusion would be anti-dilutive and consist of the following:

	December 31,
	2012		2011
Options		2,183,899		2,165,925
Warrants		592,846		2,916,590
Series B Convertible Preferred Stock		1,973,425		1,844,312
Convertible Promissory Notes		613,265		529,100
Totals		5,363,435		7,455,927

Stock-Based Compensation

Stock-Based Compensation

Stock-based compensation expense for all stock-based payment awards is based on the estimated fair value of the award. For employees and directors, the award is measured on the grant date.  For non-employees, the award is measured on the grant date and is then remeasured at each vesting date and financial reporting date.  The Company recognizes the estimated fair value of the award as compensation cost over the requisite service period of the award, which is generally the option vesting term.  The Company generally issues new shares of common stock to satisfy option and warrant exercises.

Preferred Stock

Preferred Stock

Preferred shares subject to mandatory redemption (if any) are classified as liability instruments and are measured at fair value. The Company classifies conditionally redeemable preferred shares, which includes preferred shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control, as temporary equity. At all other times, the Company classifies its preferred shares in stockholders’ deficiency. 

Convertible Instruments

Convertible Instruments

GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. An exception to this rule is when the host instrument is deemed to be conventional, as that term is described under applicable GAAP.

When the Company has determined that the embedded conversion options should not be bifurcated from their host instruments, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note.  Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. The Company also records, when necessary, deemed dividends for the intrinsic value of conversion options embedded in preferred shares based upon the differences between the fair value of the underlying common stock at the commitment date of the transaction and the effective conversion price embedded in the preferred shares.

Common Stock Warrants and Other Derivative Financial Instruments

Common Stock Warrants and Other Derivative Financial Instruments

The Company classifies as equity any contracts that (i) require physical settlement or net-share settlement or (ii) provide the Company with a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement) providing that such contracts are indexed to the Company's own stock. The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the Company’s control) or (ii) gives the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). The Company assesses classification of its common stock purchase warrants and other free standing derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required.

The Company evaluated its free standing warrants to purchase common stock to assess their proper classification in the balance sheet as of December 31, 2012 and 2011 using the applicable classification criteria enumerated under GAAP and determined that the common stock purchase warrants contain fixed settlement provisions. 

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04, “Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs." This ASU addresses fair value measurement and disclosure requirements within Accounting Standards Codification ("ASC") Topic 820 for the purpose of providing consistency and common meaning between U.S. GAAP and IFRSs. Generally, this ASU is not intended to change the application of the requirements in Topic 820. Rather, this ASU primarily changes the wording to describe many of the requirements in U.S. GAAP for measuring fair value or for disclosing information about fair value measurements. This ASU is effective for periods beginning after December 15, 2011 and did not have a material impact on the Company’s consolidated financial statements or disclosures.

In April 2013, the FASB issued ASU No. 2013-07, “Presentation of Financial Statements (Topic 205) - Liquidation Basis of Accounting." This ASU addresses the requirements and methods of applying the liquidation basis of accounting and the disclosure requirements within ASC Topic 205 for the purpose of providing consistency between the financial reporting of U.S. GAAP liquidating entities. Generally, this ASU provides guidance for the preparation of financial statements and disclosures when liquidation is imminent. This ASU is effective for periods beginning after December 15, 2013 and would only have an impact on the Company’s consolidated financial statements or disclosures if liquidation of the Company became imminent. 

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Equipment Lease Payable (Details Narrative) (USD $)	1 Months Ended	12 Months Ended
	Jan. 31, 2012	Dec. 31, 2012	Dec. 31, 2011
Equipment Gross		$ 1,201,225	$ 1,230,251
Equipment Net		768,021	943,849
custom:EquipmentLeasePayableMember
Accounts Payable			257,583
Increase in Lease Payable	257,583
Effective Interest Rate	14.70%
Equipment Gross		305,641
Equipment Net		281,472
Depreciation		$ 20,376	$ 3,793

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Related Party Transactions (Details Narrative) (USD $)	12 Months Ended			12 Months Ended		0 Months Ended	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012 custom:OfficerCapeBearMember	Dec. 31, 2011 custom:InventoryMember	Dec. 31, 2011 Sales [Member]	Sep. 12, 2011 custom:PromissoryNoteMember	Dec. 31, 2012 custom:PromissoryNoteMember	Dec. 31, 2011 custom:PromissoryNoteMember	Dec. 31, 2012 Employee Advances	Apr. 30, 2012 Employee Advances
Beneficial Ownership			12.00%
Obligations Guaranteed by Shareholders			$ 1,200,000
Payments to Acquire Inventory				618,768
Concentration Percentage				11.00%	1.56%
Notes Payable Related Party	605,000	560,000				300,000
Interest Rate						5.00%
Interest Expense	1,095,881	1,021,112					15,041	4,562
Accreud Interest	410,101	176,902	19,603
Related Party Advances										391,468
Repayments of Related Party Advances									235,000
Reclassification of Employees Advances in Shares									42,860
Provision for Employee Advance									137,610
CarryingValueEmployeeAdvances									18,858
Repayments of Related Party Debt	293,812	106,188
Consulting Expense	93,800
Insurance Premium Expense	$ 47,930	$ 29,834

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Intangible Assets (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Goodwill and Intangible Assets Disclosure [Abstract]
Impairment	$ 396,298
Amortization Expense	$ 206,243	$ 90,974

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Summary of Significant Accounting Policies (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013 Website Development
Bank Overdraft Included in Accounts Payable	$ 106,000	$ 240,000
Allowance for Doubtful Accounts	106,292	564,084
Amortization Expense	353,045	248,398	60,921
Shipping and Handling Expenses	1,077,070	1,178,471
Shipping and Handling Revenue	337,982	396,668
Advertising Costs	$ 865,946	$ 587,346

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Property and Equipment - Property and Equipment (Details) (USD $)			12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012 Computer Software	Dec. 31, 2012 Equipment	Dec. 31, 2012 Office Furniture	Dec. 31, 2012 Computer Hardware
Computer software	$ 230,299	$ 230,299
Equipment	544,108	573,134
Office furniture and equipment	95,754	95,754
Computer hardware	27,746	27,746
Leasehold improvements	303,318	303,318
Total	1,201,225	1,230,251
Less: accumulated depreciation and amortization	(433,204)	(286,402)
Property and equipment, net	$ 768,021	$ 943,849
Useful Life			5 years	15 years	7 years	5 years

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Convertible Notes Payable

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements

Convertible Notes Payable

7. Convertible Notes Payable

The Company entered into a Loan and Security Agreement dated November 8, 2010 with two lenders (the “2010 Loan Agreement”).  Under the terms of the 2010 Loan Agreement and the Purchase Agreement, the Company exchanged $1,015,000 of short-term debt with these lenders ("Old Convertible Notes") for convertible promissory notes in the aggregate principal amount of $1,000,000 (the “Convertible Notes”). The Convertible Notes bear interest at the rate of 7% per annum compounded annually (effective interest rate of 47% per annum when taking into account the stated interest rate plus the impact of warrants given as additional compensation).  The Company granted the lenders a first priority security interest in all of the Company’s assets, in order to secure the Company’s obligation to repay the loans. The principal amount and all accrued interest on the Convertible Notes were payable on December 31, 2012, or earlier on an event of default or a sale or liquidation of the Company.  The principal amount and accrued interest on the Convertible Notes may be converted at any time into shares of Series B Preferred Stock at a conversion price of $9.45 per share, as adjusted.   Under the terms of the Purchase Agreement, the Company also issued warrants to the lenders, to purchase an aggregate of 1,271,590 shares of the Company’s common stock at an exercise price of $3.00 per share with a term of five years from its grant date. The aggregate deferred debt discount related to the Convertible Notes was estimated at $660,930 using the Black Scholes model. The debt discount amortization associated with the Convertible Notes was $275,388 and $324,966 for the years ended December 31, 2012 and 2011, respectively and was recorded as interest expense using the effective interest method. As of December 31, 2012, the debt discount associated with the Convertible Notes was fully amortized. On December 31, 2012, the Company failed to repay the principal and accrued interest due on the Convertible Notes and was in default of its obligations. On February 1, 2013, the Company repaid the $1,000,000 principal of the convertible notes plus the outstanding accrued interest (see Note 16).

During 2011, other convertible notes in the aggregate principal amount of $225,000 were converted into 144,618 shares of common stock.

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Acquisition of Hocks (Details Narrative) (USD $)	0 Months Ended	12 Months Ended
	Feb. 14, 2011	Dec. 31, 2011
Business Combinations [Abstract]
Payments for Business Acquisition	$ 200,000
Non-Cash Consideration	166,667
Value of Shares Issued Non Cash	693,335
Price per share Acquisition	$ 4.16
Revenues from Acquisition		$ 2,674,031

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Commitments and Contingent Liabilities (Tables)

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimium Lease Payments

For the years ending December 31,	Amount
2013	$	110,694
2014		128,049
2015		128,049
2016		143,699
Total future minimum lease payments	$	510,491

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Notes Payable (Details Narrative) (USD $)	1 Months Ended	0 Months Ended	1 Months Ended	12 Months Ended
	Feb. 28, 2013	Oct. 31, 2011	Sep. 30, 2011	Dec. 31, 2012	Dec. 31, 2011
Amortization of Debt Discount				$ 807,766	$ 889,186
Unamortized Debt Discount					576,741
custom:LoanAndSecurityAgreementMember
Proceeds from Debt			3,000,000
Debt Interest Rate			7.00%
Effective Interest Rate			34.00%
Warrant Price			$ 2.90
Fair Value Warrants			1,131,303
Amortization of Debt Discount				532,378	554,562
Unamortized Debt Discount				44,363
Repayments of Debt		500,000
Payments of Interest		4,411
Long Term Debt				2,000,000
Repayments of Long Term Debt	$ 2,000,000
Warrants Granted			250,000

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Stockholders' Deficiency

12 Months Ended

Dec. 31, 2012

Equity [Abstract]

Stockholders' Deficiency

10. Stockholders’ Deficiency

The Company is authorized to issue up to 50,000,000 shares of common stock with a par value of $0.001 per share and 1,000,000 shares of preferred stock with a par value of $0.001 per share.

Common Stock

During the years ended December 31, 2012 and 2011, the Company sold an aggregate of 116,670 and 597,542 shares of its common stock to investors, for aggregate net proceeds of $525,004 and $1,972,241 respectively.

On October 4, 2012, the Company commenced a private placement offering of units, where a unit consisted of (i) one share of the Company’s common stock; and (ii) five-year warrants to purchase three shares of the Company’s common stock at an exercise price of $0.25 per share. Pursuant to the terms of the offering, the minimum proceeds required for a closing was $2,000,000 and the proceeds were scheduled to be used to satisfy the Company’s obligations to repay the Notes and the Convertible Notes, plus for general working capital purposes.  Through December 31, 2012, the Company received $850,002 from accredited investors for the purchase of units. As of December 31, 2012, these funds were on deposit in a bank escrow account and are classified as Restricted Cash on the consolidated balance sheet.  Since these funds would have to be returned to investors if the minimum offering amount wasn’t reached, the Company has included the $850,002 in accrued expenses and other liabilities on the accompanying consolidated balance sheet at December 31, 2012, until such time the closing occurs (see Note 16).

Treasury Stock

On September 2, 2011, the Company purchased 1,179,212 shares of its common stock from a greater than 10% stockholder of the Company, at the time, which constituted all of the outstanding shares of common stock owned by the stockholder. The purchase price was $2.90 per share, or a total purchase price of $3,419,715 that is recorded as treasury stock on the Company’s consolidated balance sheet at December 31, 2012 and 2011.

Preferred Stock

Series A Preferred Stock

The Company has designated 200,000 of the 1,000,000 authorized shares of preferred stock as Series A Convertible Preferred Stock (“Series A Preferred Stock”). The Series A Preferred Stock is non-voting, has a liquidation preference equal to its purchase price, and does not pay dividends. The holders can call for the conversion of the Series A Preferred Stock at any time and are entitled to half a share of the Company’s common stock for each share of Series A Preferred Stock converted. As of December 31, 2012, 44,443 shares of Series A Preferred Stock are available to be issued.  There is no Series A Preferred Stock outstanding as of December 31, 2012 or 2011.

Series B Preferred Stock

The Company has designated 625,000 of the 1,000,000 authorized shares of preferred stock as Series B Convertible Preferred Stock (“Series B Preferred Stock”). The Series B Preferred Stock has voting rights equal to one vote for each common share equivalent, has a liquidation preference equal to its purchase price, and receives preferred dividends equal to 7% of all outstanding shares in either cash or payment-in-kind. The holders can call for the conversion of the Series B Preferred Stock at any time and are entitled to five shares of the Company’s common stock for each share of Series B Preferred Stock converted. In addition, the Series B Preferred Stock is subject to weighted average anti-dilution protection whereby if shares of common stock are sold below the current conversion price, the conversion price is reduced pursuant to a pre-defined formula. As of December 31, 2012 and 2011, the Company had accrued contractual dividends of $261,084 and $244,001 respectively, related to the Series B Preferred Stock. On January 1, 2013, 2012 and 2011, the Company issued 27,630, 25,823 and 3,597 shares of Series B convertible preferred stock valued at $261,084, $244,001 and $33,992, and representing approximately $0.66, $0.66 and $0.09 in value per share of Series B Preferred Stock outstanding, respectively, to the Series B convertible preferred stock owners as payment in kind for dividends.  As of June 10, 2013, Series B holders are entitled to convert into 8.22 shares of the Company’s common stock for each share of Series B Preferred Stock due to the anti-dilution feature.

Series C Preferred Stock  -  Redeemable Preferred Stock

On October 17, 2011, the Company filed a Certificate of Designation of Preferences, Rights and Limitations with the Secretary of State of the State of Delaware fixing the rights, preferences and restrictions of a newly formed class of Series C Preferred Stock.  The Certificate of Designation designates 10,000 shares of the Company's preferred stock as Series C Preferred Stock to be issued at an original issue price of $100 per share.  The Series C Preferred Stock has voting rights equal to one vote for each share held, has a liquidation preference equal to its purchase price, and has certain redemption rights available at the option of the holder.  The holder can make a mandatory redemption request at any time on or after the earliest of (i) January 15, 2013, (ii) any date prior to January 15, 2013 on which the Convertible Notes are declared by the holders thereof to be, or automatically become, due and payable on an event of default, acceleration event or otherwise, (iii) immediately prior to an Asset Transfer or Acquisition, or (iv) the date on which the Convertible Notes are no longer outstanding.  The Series C Preferred Stock is non-convertible and does not pay dividends.

On October 17, 2011, the Company received net cash proceeds of $1,000,000 for the sale of 10,000 shares of Series C Preferred Stock to a greater than 10% stockholder of the Company (the “Series C Holder”). Since certain of the Company’s preferred shares contain redemption rights which are not solely within the Company’s control, these issuances of preferred stock were initially presented as temporary equity. In connection with the issuance, the investor received five-year immediately exercisable warrants to purchase 270,000 shares of the Company’s common stock at an exercise price of $2.90 per share and which had a relative fair value of $526,522 on the date of grant. The $526,522 relative fair value was recorded as a discount against the Series C Preferred Stock and was initially amortized as deemed dividends over the period through January 15, 2013.

On October 31, 2012, the Company entered into a letter agreement (the “Series C Letter”) with the Series C Holder relating to its Series C Preferred Stock. Pursuant to the Series C Letter, the Series C Holder agreed to exchange (the “Exchange”) all its shares of Series C Preferred Stock for common stock of the Company if (i) the Company receives at least $4 million in proceeds from qualifying private placements of common stock (as defined) on or prior to December 31, 2012 (the “Private Placements”) and (ii) all the Company’s Convertible Notes due December 31, 2012 and all the Company’s Notes due January 15, 2013 cease to be outstanding, and would not be replaced with other debt securities, other than debt securities issued to lenders approved by the Series C Holder. If the Exchange had occurred, for each share of Series C Preferred exchanged, the Series C Holder would have received a number of shares of common stock equal to $100 divided by the weighted average price of the shares of common stock sold in the Private Placements. However, the Company failed to raise the funds required in the Series C Letter.

On February 13, 2013, the Company received a Notice of Redemption of Series C Preferred Stock. As a result of the Convertible Notes coming due and not being paid on December 31, 2012 (see Note 7), the Company accelerated the accretion rate of the deemed dividend on the Redeemable Preferred Stock – Series C and reclassified the Redeemable Preferred Stock – Series C from temporary equity to current liabilities. The Company must now apply all of its assets to the 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 those assets required to pay its debts as they come due and those assets required to continue as a going concern toward the redemption). The Company recorded Series C deemed dividends of $433,606 and $92,916 during the years ended December 31, 2012 and 2011 respectively.  As of December 31, 2012, the discount associated with the Series C Preferred Stock was fully amortized.

Incentive Compensation/Stock Option Plans

The 2009 Incentive Compensation Plan (the “2009 Plan”) was approved on May 15, 2009 and June 4, 2009, and the increase in the total number of shares of common stock issuable pursuant to the 2009 Plan to 2,881,425 shares was approved on October 4, 2010 and September 20, 2011, by the Board of Directors and the Stockholders, respectively.

The 2009 Plan imposes individual limitations on the amount of certain awards. Under these limitations, during any fiscal year of the Company, the number of options, stock appreciation rights, shares of restricted stock, shares of deferred stock, performance shares and other stock-based awards granted to any one participant under the 2009 Plan may not exceed 250,000 shares, subject to adjustment in certain circumstances. The maximum amount that may be paid out as performance units in any 12-month performance period is an aggregate value of $2,000,000, and the maximum amount that may be paid out as performance units in any performance period greater than 12 months is an aggregate value of $4,000,000. The maximum term of each option or stock appreciation right, the times at which each option or stock appreciation right will be exercisable, and provisions requiring forfeiture of unexercised options or stock appreciation rights at or following termination of employment generally are fixed by the board of directors or committee of the Company’s board of directors designated to administer the 2009 Plan (the “Committee”), except that no option or stock appreciation right may have a term exceeding ten years. The exercise price per share subject to an option and the grant price of a stock appreciation rights are determined by the Committee, but in the case of an incentive stock option, the exercise price must not be less than the fair market value of a share of common stock on the date of grant.

Stock Options

Grants

During the year ended December 31, 2011, the Company granted options to purchase an aggregate of 360,000 shares of common stock to certain employees and directors. These options vest over a three year period, have a term of 10 years, and contain an exercise price between $3.30 and $4.62 per share. The options were granted under the 2009 Plan and had an aggregate grant date value of $1,106,879.

During the year ended December 31, 2011, the Company granted options to purchase an aggregate of 140,000 shares of common stock to consultants. These options vest over a three year period, have a term of 10 years, and contain an exercise price between $4.10 and $4.62 per share. The options were granted under the 2009 Plan had an aggregate grant date value of $399,989.

On August 31, 2011, the Company granted an option to an officer of the Company to purchase 250,000 shares of common stock at an exercise price of $3.80 per share. The option was not granted pursuant to an established plan. The shares vest when a specified financing is secured. The option has a term of five years and a grant date value of $891,569.  Since the option contains performance conditions, the fair value of such option has not been recorded since securing the financing is not currently considered probable.

On March 30, 2012, the Company granted options to four directors to purchase an aggregate of 60,000 shares of common stock under the 2009 Plan at an exercise price of $6.99 per share. The options have an aggregate grant date value of $391,028, vest over a three year period and have a term of ten years.

On March 30, 2012, the Company granted options to employees to purchase an aggregate of 30,000 shares of common stock under the 2009 Plan at an exercise price of $6.99 per share. The options have an aggregate grant date value of $195,514, vest over a three year period and have a term of ten years.

On October 15, 2012, the Company granted options to employees to purchase an aggregate of 76,000 shares of common stock under the 2009 Plan at an exercise price of $4.95 per share for an aggregate grant date value of $359,609.  The options vest over a three year period and have a term of ten years.

On October 15, 2012, the Company granted an option to an officer of the Company to purchase 250,000 shares of common stock under the 2009 Plan at an exercise price of $4.95 per share for a grant date value of $1,182,925.  The option vests over a three year period and has a term of ten years.

Exercises

On July 26, 2011, a former officer exercised an option to purchase 50,000 shares of common stock at an exercise price of $0.80 per share for aggregate cash proceeds of $40,000.

On November 2, 2011, a former officer was issued 31,934 shares upon the cashless exercise of an option to purchase 37,875 shares of common stock at an exercise price of $0.80 per share.

On January 6, 2012, a former officer was issued 92,858 shares of common stock pursuant to a cashless exercise of a stock option to purchase 105,450 shares of common stock with an exercise price of $0.80 per share.

On May 4, 2012, the Company received $26,662 in proceeds from the exercise of options to purchase 4,166 shares of the common stock at $2.80 per share and 4,166 shares of common stock at $3.60 per share.

On November 12, 2012, a former officer was issued 63,129 shares of common stock pursuant to a cashless exercise of a stock option to purchase 17,575 shares of common stock (14,676 net shares) at an exercise price of $0.80 per share and a stock option to purchase 100,000 shares of common stock (48,453 net shares) at an exercise price of $2.50 per share.

The aggregate intrinsic value of options exercised was $932,795 and $324,075 for the years ended December 31, 2012 and 2011, respectively.

Valuation and Amortization

Option valuation models require the input of highly subjective assumptions. Through June 30, 2011 and in prior periods, the fair value of stock-based payment awards was estimated using the Black-Scholes option model with a volatility figure derived from an index of historical stock prices of comparable entities until sufficient data existed to estimate the volatility using the Company’s own historical stock prices.  Beginning in July 2011, the Company began to use the historical trading prices of its own common stock as a component in the calculation of an estimated volatility figure to determine the fair value of new stock-based payment awards using the Black-Scholes model. Management determined this assumption to be a more accurate indicator of value. The Company accounts for the expected life of options in accordance with the “simplified” method which enables the use of the simplified method for “plain vanilla” share options as defined in Staff Accounting Bulletin No. 107.  The risk-free interest rate was determined from the implied yields of U.S. Treasury zero-coupon bonds with a remaining life consistent with the expected term of the options.

The fair value of stock-based payment awards was estimated using the Black-Scholes pricing model with the following assumptions as follows:

	For the Year Ended December 31, 2012	For the Year Ended December 31, 2011
Risk-free interest rate	0.67% to 1.04%	0.88% to 2.72%
Dividend yield	None	None
Expected volatility	163.7%-172.2%	133.4% to 185.2%
Expected life in years	6.00	6.00

The weighted average fair value of the stock options granted during the years ended December 31, 2012 and 2011 were $5.12 and $3.20, respectively.

In addition, the Company is required to estimate the expected forfeiture rate and only recognize expense for those shares expected to vest. In estimating the Company’s forfeiture rate, the Company analyzed its historical forfeiture rate, the remaining lives of unvested options, and the number of vested options as a percentage of total options outstanding. If the Company’s actual forfeiture rate is materially different from its estimate, or if the Company reevaluates the forfeiture rate in the future, the stock-based compensation expense could be significantly different from what the Company has recorded in the current period. The Company estimated forfeitures related to option grants at a weighted average annual rate of 5% and 0% per year for options granted during the years ended December 31, 2012 and 2011, respectively.

Stock-based compensation expense for the years ended December 31, 2012 and 2011 was recorded in the consolidated statements of operations as a component of selling, general and administrative expenses and totaled $556,148 and $948,923, respectively.

As of December 31, 2012, stock-based compensation expense of approximately $2,898,361 remains unamortized, including $2,006,792 which is being amortized over the weighted average remaining period of 2.7 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

Details of the options outstanding under the 2009 Plan are as follows:

	Shares			Weighted Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Options outstanding at January 1, 2011		1,996,300		$	2.14
Granted		750,000		$	4.08
Expired		-			-
Canceled		(492,500	)	$	1.96
Exercised		(87,875	)	$	0.80
Options outstanding at January 1, 2012		2,165,925		$	2.89
Granted		416,000		$	5.39
Expired		--			--
Canceled		(166,669	)	$	4.03
Exercised		(231,357	)	$	1.62
Options outstanding at December 31, 2012		2,183,899		$	3.42		5.97	$	2,348,938
Options exercisable at December 31, 2012		1,133,898		$	2.50		4.79	$	2,001,437

		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
	$0.80 - $2.20	$	1.58		485,900	$	1.58		2.7		485,900
	$2.21 - $3.80	$	3.18		955,333	$	2.90		5.8		514,666
	$3.81 - $6.99	$	4.92		742,666	$	4.31		8.3		133,332
	$0.80 - $6.99	$	3.42		2,183,899	$	2.50		4.8		1,133,898

Warrants

Grants

On August 31, 2011, the Company granted a warrant to a consultant to purchase 250,000 shares of common stock at an exercise price of $3.80 per share. The warrant was not granted pursuant to an established plan. The shares vest when a specified financing is secured. The warrant has a term of five years and a grant date value of $576,840. Since the warrant contains performance conditions, the fair value of such warrant has not been recorded since securing the financing is not currently considered probable.

On October 15, 2012, the Company granted a consultant a ten-year warrant to purchase 30,000 shares of common stock at an exercise price of $4.95 per share. The warrant had a grant date value of $115,049 which will be recognized over the three year vesting period.

Exercises

During the year ended December 31, 2011, the Company issued an aggregate of 14,135 shares of common stock to a warrant holder who elected to exercise a warrant to purchase 18,750 shares of common stock at an exercise price of $1.60 per share on a “cashless basis” under the terms of the warrants. The warrant holder was the Company’s investment advisor and the Company’s Audit Committee Chairman was a senior managing director of this investment advisory firm when the warrant was granted in 2010.

During the year ended December 31, 2012, the Company issued an aggregate of 1,465,578 shares of common stock to three holders of warrants who elected to exercise 2,353,744 warrants on a “cashless” basis under the terms of the warrants. The warrants had exercise prices of $1.60 per share (471,628 net shares), $3.00 per share (701,388 net shares) and $2.90 per share (292,562 net shares).

The aggregate intrinsic value of warrants exercised was $10,316,439 and $91,875 for the years ended December 31, 2012 and 2011, respectively.

Summary

Details of outstanding warrants are as follows:

	Shares			Weighted Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Warrants outstanding at January 1, 2011		1,915,340		$	2.53
Issued		1,020,000		$	2.90
Expired		-			-
Exercised		(18,750	)	$	1.60
Warrants outstanding at January 1, 2012		2,916,590		$	2.67
Issued		30,000		$	4.95
Expired		-			-
Exercised		(2,353,744	)	$	2.61
Warrants outstanding at December 31, 2012		592,846		$	3.01	3.98	$	755,558
Warrants exercisable at December 31, 2012		312,846		$	2.91	3.67	$	418,058

Range of Exercise		Number Outstanding		Weighted Average Remaining Contractual Term		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
	$2.90 – $3.00		562,846		3.67	$	2.91		312,846	$	2.91
	$3.01 – $4.95		30,000		9.79	$	4.95		-		-
	$2.90 – $4.95		592,846		3.98	$	3.01		312,846	$	2.91

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Accrued Expenses and Other Current Liabilities

12 Months Ended

Dec. 31, 2012

Payables and Accruals [Abstract]

Accrued Expenses and Other Current Liabilities

6. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following:

	December 31,
	2012		2011
Deferred rent	$	39,100	$	31,947
Advertising		75,000		-
Salaries and benefits		166,118		-
Professional fees		81,872		49,000
Dividend payable		261,084		244,001
Accrued interest		410,101		176,902
Due to investors (1)		850,002		-
Other		8,159		47,161
Total	$	1,891,436	$	549,011

(1) - Proceeds received from investors in advance of equity offering closing.

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Organization and Basis of Presentation

12 Months Ended

Dec. 31, 2012

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Basis of Presentation

1.  Organization and Basis of Presentation

HealthWarehouse.com, Inc., a Delaware company incorporated in 1998, (the “Company”) 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 February 14, 2011, the Company acquired Hocks.com, Inc. an Ohio company plus all of the inventory and fixed assets owned by Hocks Pharmacy used in the operation of its internet pharmacy business, as well as its customer list and domain name (see Note 15). The consolidated financial statements in this report are the financial statements of HealthWarehouse.com, Inc. and Subsidiaries.

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Commitments and Contingent Liabilities (Details Narrative) (USD $)	12 Months Ended		0 Months Ended						0 Months Ended	22 Months Ended	1 Months Ended	12 Months Ended	24 Months Ended	26 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Nov. 30, 2011 custom:NMNAdvisorsMember	Feb. 09, 2012 custom:RockCastleJasonSmithMember	Oct. 09, 2012 custom:AMEXTravelMember	Nov. 05, 2012 custom:HDSmithMember	Mar. 13, 2013 custom:FormerVendorMember	May 07, 2013 custom:DerivativeActionLawsuitMember	May 15, 2013 custom:FormerConsultantMember	Mar. 31, 2013 custom:ApartmentMember	Jun. 30, 2012 custom:OfficeAndStorageMember	Dec. 31, 2016 custom:OfficeAndStorageMember	Dec. 31, 2015 custom:OfficeAndStorageMember	Dec. 31, 2013 custom:OfficeAndStorageMember	Dec. 31, 2012 custom:OfficeAndStorageMember	Aug. 29, 2011 custom:OfficeAndStorageMember sqft	Jun. 15, 2011 custom:OfficeAndStorageMember sqft
Monthly Lease Rate										$ 2,850		$ 11,975	$ 10,671	$ 9,224
Area of Office and Storage Space																62,600	28,000
Deferred Rent Payable															39,101
Payments to Contractor in Settlement											189,000
Rent Expense	195,116	166,857
Damages sought			70,000	2.086	87,029	170,316	17,800		27,000
Options refused to be exercised				233,332
Exercise Price				$ 2.00
Loans Payable								$ 500,000

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Stockholders' Deficiency - Schedule of Options Exercise (Details) (USD $)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Number Outstanding	2,183,899	2,165,925	1,996,300
Weighted Average Exercise Price	$ 3.42	$ 2.89	$ 2.14
Number Exercisable	1,133,898
Weighted Average Exercise Price	$ 2.5
$0.80-2.20
Number Outstanding	485,900
Weighted Average Remaining Years of Contractual Life	2.7
Weighted Average Exercise Price	$ 1.58
Number Exercisable	485,900
Weighted Average Exercise Price	$ 1.58
$2.21-3.80
Number Outstanding	955,933
Weighted Average Remaining Years of Contractual Life	5.8
Weighted Average Exercise Price	$ 3.18
Number Exercisable	514,666
Weighted Average Exercise Price	$ 2.9
$3.81-6.99
Number Outstanding	742,666
Weighted Average Remaining Years of Contractual Life	8.3
Weighted Average Exercise Price	$ 4.92
Number Exercisable	133,332
Weighted Average Exercise Price	$ 4.31
$0.80-6.99
Number Outstanding	2,183,899
Weighted Average Remaining Years of Contractual Life	4.8
Weighted Average Exercise Price	$ 3.42
Number Exercisable	1,133,898
Weighted Average Exercise Price	$ 2.5

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Going Concern and Management's Liquidity Plans (Details Narrative) (USD $)	6 Months Ended	12 Months Ended
	Jul. 17, 2013	Dec. 31, 2012	Dec. 31, 2011	Feb. 13, 2013
Notes to Financial Statements
Working Capital Deficiency		$ 8,395,171
Accumulated Deficit		(20,828,674)	(14,559,209)
Net Loss		(5,574,775)	(5,712,199)
Net Cash Used in Operating Activities		(947,911)	(2,560,013)
Capital Rasied in Equity Financing	3,501,975
Repayment of Notes	3,000,000		1,000,000
Proceeds from Debt	500,000
Converted Equity	833,000
Preferred Stock Redemption Amount				$ 1,000,000

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Acquisition of Hocks - Schedule of Assets Acquired (Details) (USD $)	Feb. 14, 2011
Business Combinations [Abstract]
Inventory	$ 200,000
Customer relationships	693,335
Net fair value of assets acquired	$ 893,335

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Related Party Transactions

12 Months Ended

Dec. 31, 2012

Related Party Transactions [Abstract]

Related Party Transactions

13. Related Party Transactions

Lalit Dhadphale, the Company’s President, Chief Executive Officer and Principal Financial Officer, and Cape Bear Partners LLC (“Cape Bear”), who at the time was a beneficial owner of 12% of the Company’s common stock, guaranteed certain obligations with an original principal value of approximately $1,200,000, which notes were assumed by the Company in connection with its 2009 reverse merger. The guarantees state that Mr. Dhadphale and Cape Bear each guarantee the full payment of principal and interest under the notes. On January 5, 2011, the remaining convertible note balance under these notes was satisfied by conversion to common stock, and the guarantee was terminated.

Jason Smith is a manager of Rock Castle, a stockholder of the Company through September 2, 2011. Jason Smith is also the son of Dennis Smith, the controlling stockholder of Masters Pharmaceutical, Inc., one of the Company’s former suppliers.  The Company purchased from Masters Pharmaceutical, Inc., $618,768 of inventory, representing approximately 11% of total purchases during the year ended December 31, 2011. There were no accounts payable due to Masters Pharmaceutical, Inc. at December 31, 2011. For the year ended December 31, 2011, sales to Masters Pharmaceuticals, Inc. were approximately 1.56% of net sales.

On September 12, 2011, the Company entered into a Promissory Note Agreement for $300,000 with a stockholder, at an interest rate of 5% per annum which became payable on demand as of  November 12, 2011.   On March 13, 2013, the Promissory Note Agreement was converted into common stock. During the years ended December 31, 2012 and 2011, the Company recorded interest expense of $15,041 and $4,562, respectively. As of December 31, 2012, accrued interest was $19,603.

Between June 2009 and April 2012, an employee who is the son of the managing member of Cape Bear, received advances from the Company in various forms. In April 2012, this employee voluntarily resigned from the Company.  At the height, the balance of these advances totaled $391,468 including interest. Principal repayments towards the outstanding advances aggregating $235,000 have been made during 2012. Previously classified as an asset, the outstanding amount was reclassified under Stockholders’ Deficiency as the Company determined to exercise its rights associated with a pledge agreement for 42,860 shares of common stock. As of December 31, 2012, the Company established a $137,610 reserve for the unsecured balance (based on the recent market price of the common stock) such that the carrying value of these advances was $18,858.  The Company continues to pursue all avenues of collection. The Company also provided fulfillment services at no charge to a business partly owned by a member of his household. The Company’s Board of Directors determined that not all of these advances were approved in accordance with the Company’s policy on related party transactions, documented appropriately or recorded correctly in the Company’s accounting system. As a result, the Company was not able to monitor the outstanding amount of these advances on a continuous basis. The individual agreed to repay the remaining balance with interest based on prime rate on the first business day of the calendar quarter.

During the years ended December 31, 2012 and 2011, the Company received advances of $605,000 and $560,000 and repaid advances of $293,812 and $106,188 respectively, from certain stockholders. Such advances are due on demand and are non-interest bearing.

During the year ended December 31, 2012, a director was paid $93,800 for general financial and business consulting.

From March 2011 to April 2013, a wife of a director served as the agent for the Company's D&O insurance. During the years ended December 31, 2012 and 2011, the Company recorded insurance premium expense of $47,930 and $29,834, respectively.

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Equipment Lease Payable

12 Months Ended

Dec. 31, 2012

Debt Disclosure [Abstract]

Equipment Lease Payable

9. Equipment Lease Payable

At December 31, 2011, the Company had $257,583 included in Accounts Payable - Trade relating to certain equipment acquired. In January 2012, the Company renegotiated the terms of the payable into a lease agreement for the same equipment, which resulted in an adjustment to the cost basis of the equipment (see Note 4). The lease term is five years with a principal amount of $257,583 and an effective interest rate of 14.7% per annum.

Future minimum lease payments, by year and in the aggregate, under equipment leases, which includes capital leases, as of December 31, 2012, are as follows:

For the years ending December 31,	Lease payments
2013	$	76,757
2014		76,727
2015		75,892
2016		48,949
Total		278,325
Less: amount representing interest		(62,917	)
Present value of future lease payments	$	215,408

As of December 31, 2012, the related equipment had a gross and net book value of $305,641 and $281,472, respectively. Depreciation of assets held under equipment leases in the amounts of $20,376 and $3,793 is included in depreciation expense for the years ended December 31, 2012 and 2011, respectively.

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Subsequent Events

12 Months Ended

Dec. 31, 2012

Subsequent Events [Abstract]

Subsequent Events

16. 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 consolidated financial statements, except as disclosed below.

Private Placement Offerings

On February 1 and 6, 2013, the Company completed private placements for an aggregate of $3,376,975 for the purchase 3,376,975 units at a price of $1.00 per unit. The aggregate amount includes $500,000, which was received from an officer. Each unit consists of (i) one share of the Company’s common stock, and (ii) a five-year warrant to purchase three shares of the Company’s common stock at an exercise price of $0.25 per share. In connection with the Private Placement, an officer has entered into repurchase agreements with each other purchaser of units, pursuant to which he has agreed to repurchase, subject to certain conditions, one-half of each holder’s units at a purchase price of $1.00 per unit if the closing price of the Common Stock is less than $0.25 on five consecutive trading days at any time within one year of February 1, 2013. Cape Bear, which holds a substantial equity position in the Company, entered into repurchase agreements with each purchaser, other than the officer, that are substantially similar to the officer’s agreements, except that Cape Bear’s obligations are secured by a lien over certain real estate. Substantially all of the proceeds from the sale of the units were used by the Company to satisfy all of its obligations under the Notes and Convertible Notes (see Note 2).

On February 15, 2013, the Company granted five-year warrants to purchase an aggregate of 408,345 shares of common stock at an exercise price of $1.00 per share to investors who purchased shares in private placements at $4.50 per share during 2012.

On March 13, 2013, the Company converted $761,000 of notes payable and other advances – related parties and $72,000 of accounts payable to a related party into an aggregate of 833,000 units at a price of $1.00 per unit. Each unit consists of (i) one share of the Company’s common stock, and (ii) a five-year warrant to purchase two and three-quarters shares of the Company’s common stock at an exercise price of $0.25 per share.

On April 11, 2013, the Company completed private placements for an aggregate of $125,000 for the purchase 125,000 units at a price of $1.00 per unit. Each unit consists of (i) one share of the Company’s common stock, and (ii) a five-year warrant to purchase three shares of the Company’s common stock at an exercise price of $0.25 per share. Substantially all of the proceeds from the sale of the units were used by the Company to satisfy all of its obligations under the Notes and Convertible Notes (see Note 2).

Warrant Exercises

Subsequent to December 31, 2012, the Company issued an aggregate of 9,390,257 shares of common stock to several holders of warrants who elected to exercise warrants to purchase 11,125,744 shares of common stock on a "cashless" basis under the terms of the warrants. The warrants had exercise prices of $0.25 per share (8,816,431 net shares) and $0.35 per share (573,826 net shares).

On June 18, 2013, the Company issued an aggregate of 159,352 shares of common stock to several holders of warrants who elected to exercise warrants to purchase 408,345 shares of common stock on a "cashless" basis under the terms of the warrants. The warrants had exercise prices of $1.00 per share.

On June 20, 2013, the Company issued an aggregate of 185,138 shares of common stock to two holders of warrants who elected to exercise warrants to purchase 215,000 shares of common stock on a "cashless" basis under the terms of the warrants.  The warrants had an exercise price of $0.25 per share.

On July 1, 2013, the Company issued 130,053 shares of common stock to a warrant holder who elected to exercise a warrant to purchase 150,000 shares of common stock on a "cashless" basis under the terms of the warrant.  The warrant had an exercise price of $0.25 per share.

Option Grants

On February 15, 2013, the Company granted options to employees to purchase an aggregate of 330,500 shares of common stock under the 2009 Plan at an exercise price of $1.60 per share for an aggregate grant date value of $395,041. The options vest over a three year period and have a term of ten years.

On June 19, 2013, the Company granted an option to a director to purchase 100,000 shares of common stock under the 2009 Plan at an exercise price of $1.45 per share for a grant date value of $109,600.  The option vests over a three year period and has a term of ten years.

Settlement Agreement

On February 22, 2013, the Company entered into a settlement agreement with a counterparty for amounts owed related to the return of expired goods and inventory. On February 28, 2013, the Company received $50,000 in connection with the agreement in complete satisfaction of all outstanding and past due accounts receivable from the counterparty. The balance due to the Company as of December 31, 2012 was $424,525, of which $374,525 was written off and the balance was included in accounts receivable on the consolidated balance sheet and the Company had fully reserved against the remaining balance.

Pagosa Health LLC

On June 4, 2013, the Company formed a wholly owned subsidiary called Pagosa Health LLC (“Pagosa”). 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, Indiana. A redundant facility is required by Verified Internet Pharmacy Practice Sites (“VIPPS”) and a newly acquired contract.  Pagosa will serve as a backup facility and will function as a closed door pharmacy. 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.

Related Party Advances

Subsequent to December 31, 2012, an officer advanced an aggregate of approximately $61,000 to the Company and he was repaid an aggregate of $102,000.

Note Payable

On March 28, 2013, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with a lender (the "Lender"). Under the terms of the Loan Agreement, the Company borrowed $500,000 from the Lender (the “Loan”). The Loan is evidenced by a promissory note (the “Note”) and 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. 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, beginning on May 1, 2013. The principal amount and all unpaid accrued interest on the 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 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. 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 five percent (5.0%) per annum above the otherwise applicable interest rate (the “Default 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.

In consideration of the Loan, the Company granted the Lender a five-year warrant to purchase 750,000 shares of common stock at an exercise purchase price of $0.35 per share. The warrants contain customary anti-dilution and exercise price adjustment provisions.

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Income Taxes

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Income Taxes

14.  Income Taxes

As of December 31, 2012 and 2011 the Company had approximately $12,600,000 and $8,000,000, respectively, of federal net operating loss carryforwards (“NOLs”) that may be available to offset future taxable income. The federal net operating loss carry forwards, if not utilized, will expire from 2027 to 2032.  As of December 31, 2012 and 2011, the Company had approximately $3,000,000 and $700,000 of state net operating loss carryforwards available to offset future taxable income. The state NOLs, if not utilized, will expire beginning in 2031.

The Company files income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions and is subject to examination by the various taxing authorities.  The Company’s federal and local income tax returns for tax years beginning in 2009 remain subject to examination.

In accordance with Section 382 of the Internal Revenue code, the usage of the Company's net operating loss carryforwards could be limited in the event of a change in ownership. Based upon a study that analyzed the Company's stock ownership activity, a change of ownership was deemed to have occurred in 2011. This change of ownership created an annual limitation of approximately $1,000,000 on the usage of the Company's losses which are available through 2031.

The income tax provision (benefit) for the years ended December 31, 2012 and 2011 was as follows:

	For The Years Ended
	December 31,
	2012			2011
Federal:
Current	$	-		$	-
Deferred		(1,299,493	)		(1,685,029	)
State and local:
Current		-			-
Deferred		(191,102	)		(247,798	)
		(1,490,595	)		(1,932,827	)
Change in valuation allowance		1,490,595			1,932,827
Income tax provision (benefit)	$	-		$	-

The effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2012 and 2011 are as follows:

	December 31,
	2012			2011
Deferred tax assets:
Net operating loss carryforwards	$	4,465,161		$	2,954,459
Stock-based compensation		258,743			164,841
Inventory reserves		54,000			58,500
Allowance for bad debt		87,405			252,993
Charitable contribution carryforwards		5,630			4,306
Accruals		24,775			-
Total deferred tax assets		4,895,714			3,435,099
Valuation allowance		(4,876,671	)		(3,386,076	)
Deferred tax assets, net of valuation allowance		19,043			49,023
Deferred tax liabilities:
Property and equipment		(19,043	)		(49,023	)
Net deferred tax assets	$	-		$	-
Change in valuation allowance	$	1,490,595		$	1,932,827

The Company assesses the likelihood that deferred tax assets will be realized.  To the extent that realization is not likely, a valuation allowance is established.  Based upon the history of losses, management believes that it is more likely than not that future benefits of deferred tax assets will not be realized.

For the years ended December 31, 2012 and 2011, the expected tax expense (benefit) based on the statutory rate is reconciled with actual tax expense (benefit) as follows:

	For The Years Ended
	December 31,
	2012			2011
US federal statutory rate		(34.0	%)		(34.0	%)
State tax rate, net of federal benefit		(2.0	%)		(5.0	%)
Permanent differences
- Stock based compensation		2.9	%		3.6	%
- Write-off and amortization of intangible asset		3.9	%		0.6	%
- Other		2.4	%		1.0	%
Change in valuation allowance		26.8	%		33.8	%
Income tax provision (benefit)		0.0	%		0.0	%

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Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2012	Jul. 17, 2013	Jun. 29, 2012
Document And Entity Information
Entity Registrant Name	HealthWarehouse.com, Inc.
Entity Central Index Key	0000754813
Document Type	10-K
Document Period End Date	Dec. 31, 2012
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 Public Float			$ 29,864,000
Entity Common Stock, Shares Outstanding		26,050,960
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2012

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Acquisition of Hocks

12 Months Ended

Dec. 31, 2012

Business Combinations [Abstract]

Acquisition of Hocks

15. Acquisition of Hocks

On February 14, 2011, Hocks Acquisition Corporation (“Hocks Acquisition”) the Company’s wholly-owned subsidiary (formed February 2011), entered into an Asset Purchase Agreement (the “Asset Purchase Agreement”) with Hocks Pharmacy, an Ohio corporation and its stockholders.  Under the Asset Purchase Agreement, Hocks Acquisition purchased all of the inventory and fixed assets (the “Purchased Assets”) owned by Hocks Pharmacy and used in the operation of its internet pharmacy business (the “Internet Business”).  The Internet Business consists primarily of the internet sale of over-the-counter health and medical products and supplies.  Hocks Acquisition paid $200,000 in cash to Hocks Pharmacy for the Purchased Assets.

Also on February 14, 2011, the Company entered into a Merger Agreement (the “Merger Agreement”) with Hocks Pharmacy and its stockholders and Hocks.com Inc. (“Hocks.com”), a newly formed Ohio corporation and a wholly-owned subsidiary of Hocks Pharmacy.  Under the Merger Agreement, Hocks Acquisition merged into Hocks.com and Hocks.com became the Company’s wholly-owned subsidiary.  At the time of the Merger, Hocks.com owned all of the intangible assets of the Internet Business, including trademarks, domain names, and customer accounts. The merger consideration consisted of 166,667 shares of the Company’s common stock issued to Hocks Pharmacy, valued at $693,335, based on the $4.16 share price on the date of the closing of the transaction.

The following table summarizes the allocation of the purchase price for Hocks:

Inventory	$	200,000
Customer relationships		693,335
Net fair value of assets acquired	$	893,335

The following represents a summary of the purchase price consideration:

Common stock	$	693,335
Cash		200,000
Total purchase price consideration	$	893,335

The Company allocated the excess value entirely to customer relationships with an estimated useful life of seven years. The basis of the allocation was both for quantifiable and qualitative reasons. The quantifiable reasons were based on the estimated number of permanent customers that would be retained by the Company divided into the net fair value of the customer relationship approximated the Company’s average customer acquisition costs for the year ended December 31, 2011. The qualitative reason for allocating the excess value entirely to customer relationship was that the purpose of the acquisition was to acquire new revenue producing customers. The primary factor in estimating the useful life of seven years was based on public information of major pharmacies discounted to reflect the size of the Hocks.com acquisition (see Note 5).

During the year ended December 31, 2011, the Company recognized $2,674,031, of revenue generated by Hocks.com. The Company has determined that disclosing the earnings of Hocks.com for the period from February 14, 2011 (date of acquisition) through December 31, 2011 is impracticable as distinguishing objectively the operating expenses incurred to support the Hocks.com sales is not readily determinable as it has been consolidated with the operating results of the Company.

The following table presents the unaudited pro-forma combined results of operations of the Company and Hocks.com for the year ended December 31, 2011 as if Hocks.com had been acquired at January 1, 2011:

	2011 (unaudited)
Revenue	$	10,697,247
Net loss	$	(5,719,396	)
Net loss attributable to common stockholders per share – basic and diluted	$	(6,056,313	)
Pro-forma basic and diluted net loss per common share	$	(0.55	)
Net loss attributable to common stockholders per share – basic and diluted	$	(0.58	)
Weighted average common shares outstanding – basic and diluted		10,418,215

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Acquisition of Hocks - Schedule of Pro-forma Results (Details) (USD $)	12 Months Ended
	Dec. 31, 2011
Business Combinations [Abstract]
Revenue	$ 10,697,247
Net loss	(5,719,396)
Net loss attributable to common stockholders per share – basic and diluted	$ (6,056,313)
Pro-forma basic and diluted net loss per common share	$ (0.55)
Net loss attributable to common stockholders per share – basic and diluted	$ (0.58)
Weighted average common shares outstanding – basic and diluted	10,418,215

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Acquisition of Hocks - Schedule of Purchase Price Allocation (Details) (USD $)	0 Months Ended
	Feb. 14, 2011
Business Combinations [Abstract]
Common stock	$ 693,335
Cash	200,000
Total purchase price consideration	$ 893,335