----

| x | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------|

| Delaware                          |   | 22-2413505          |
|-----------------------------------|--------|---------------------|
| (State or Other Jurisdiction      |   | (I.R.S. Employer    |
| of Incorporation or Organization) |   | Identification No.) |

| 100 Commerce Boulevard, Cincinnati, Ohio |   | 45140      |
|------------------------------------------|--------|------------|
| (Address of Principal Executive Offices) |   | (Zip Code) |

----

| Large Accelerated Filer o                     |   | Accelerated Filer  o         |
|-----------------------------------------------|--------|----------------------------------------|
|                                          |   |                                   |
| Non-accelerated Filer o                       |   | Smaller Reporting Company  x |
| (Do not check if a smaller reporting company) |

----

|                                                                                                | Page   |
|-----------------------------------------------------------------------------------------------------|--------|
|                                                                                                |   |
| PART I. FINANCIAL INFORMATION                                                                       |   |
|                                                                                                |   |
| ITEM 1. Financial Statements                                                                        | 1      |
|                                                                                                |   |
| ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 11     |
|                                                                                                |   |
| ITEM 3. Quantitative and Qualitative Disclosures About Market Risk                                  | 15     |
|                                                                                                |   |
| ITEM 4. Controls and Procedures                                                                     | 15     |
|                                                                                                |   |
| PART II. OTHER INFORMATION                                                                          |   |
|                                                                                                |   |
| ITEM 1. Legal Proceedings                                                                           | 18     |
|                                                                                                |   |
| ITEM 1A. Risk Factors                                                                               | 18     |
|                                                                                                |   |
| ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds                                 | 18     |
|                                                                                                |   |
| ITEM 3. Defaults upon Senior Securities                                                             | 18     |
|                                                                                                |   |
| ITEM 4. (Removed and Reserved)                                                                      |   |
|                                                                                                |   |
| ITEM 5. Other Information                                                                           | 18     |
|                                                                                                |   |
| ITEM 6. Exhibits                                                                                    | 18     |
|                                                                                                |   |
| SIGNATURES                                                                                          | 19     |

----

|                                                                                                                                                                                                                                                                                  |   | March 31, 2011 |       |   | December 31, 2010 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|------------|--------|-----------------------------|--------|
|                                                                                                                                                                                                                                                                                  |   | (Unaudited)              |       |   |                        |   |
|                                                                                                                                                                                                                                                                                  |   |                     |       |   |                        |   |
| Assets                                                                                                                                                                                                                                                                                |   |                     |       |   |                        |   |
|                                                                                                                                                                                                                                                                                  |   |                     |       |   |                        |   |
| Current assets                                                                                                                                                                                                                                                                        |   |                     |       |   |                        |   |
| Cash                                                                                                                                                                                                                                                                                  |   | $                        | 828,528    |   |                        | $      | 1,397,583 |   |
| Accounts receivable, net of allowance for doubtful accounts of $150,000 and $120,000,respectively                                                                                                                                                                                     |   |                     | 707,338    |   |                        |   | 604,524 |   |
| Inventories – finished goods                                                                                                                                                                                                                                                    |   |                     | 508,762    |   |                        |   | 374,519 |   |
| Employee advances                                                                                                                                                                                                                                                                     |   |                     | 57,571     |   |                        |   | 51,429 |   |
| Prepaid expenses and other current assets                                                                                                                                                                                                                                             |   |                     | 124,263    |   |                        |   | 126,708 |   |
| Total current assets                                                                                                                                                                                                                                                                  |   | $                        | 2,226,462  |   |                        | $      | 2,554,763 |   |
|                                                                                                                                                                                                                                                                                  |   |                     |       |   |                        |   |   |   |
| Property and equipment, net                                                                                                                                                                                                                                                           |   |                     | 306,142    |   |                        |   | 320,328 |   |
| Website development costs, net of accumulated amortization of $164,525 and $139,475, respectively                                                                                                                                                                                     |   |                     | 35,871     |   |                        |   | 60,921 |   |
| Intangible assets, net of accumulated amortization of $16,508 and $0, respectively                                                                                                                                                                                                    |   |                     | 676,827    |   |                        |   | - |   |
|                                                                                                                                                                                                                                                                                  |   |                     |       |   |                        |   |   |   |
| Total assets                                                                                                                                                                                                                                                                          |   | $                        | 3,245,302  |   |                        | $      | 2,936,012 |   |
|                                                                                                                                                                                                                                                                                  |   |                     |       |   |                        |   |   |   |
| Liabilities and Stockholders’ Equity                                                                                                                                                                                                                                            |   |                     |       |   |                        |   |   |   |
| Current liabilities                                                                                                                                                                                                                                                                   |   |                     |       |   |                        |   |   |   |
| Accounts payable – related parties                                                                                                                                                                                                                                              |   | $                        | 266,708    |   |                        | $      | 232,858 |   |
| Accounts payable – trade                                                                                                                                                                                                                                                        |   |                     | 1,286,840  |   |                        |   | 807,481 |   |
| Accrued expenses and other current liabilities                                                                                                                                                                                                                                        |   |                     | 142,642    |   |                        |   | 240,098 |   |
| Convertible notes, net of deferred debt discount of $0 and $9,658, respectively                                                                                                                                                                                                       |   |                     | 25,000     |   |                        |   | 215,342 |   |
|                                                                                                                                                                                                                                                                                  |   |                     |       |   |                        |   |   |   |
| Total current liabilities                                                                                                                                                                                                                                                             |   | $                        | 1,721,190  |   |                        | $      | 1,495,779 |   |
|                                                                                                                                                                                                                                                                                  |   |                     |       |   |                        |   |   |   |
| Convertible notes payable, net of deferred debt discount of $523,237 and $600,354, respectively                                                                                                                                                                                       |   |                     | 476,763    |   |                        |   | 399,646 |   |
|                                                                                                                                                                                                                                                                                  |   |                     |       |   |                        |   |   |   |
| Total liabilities                                                                                                                                                                                                                                                                     |   | $                        | 2,197,953  |   |                        | $      | 1,895,425 |   |
|                                                                                                                                                                                                                                                                                  |   |                     |       |   |                        |   |   |   |
| Commitments and contingencies                                                                                                                                                                                                                                                         |   |                     |       |   |                        |   |   |   |
|                                                                                                                                                                                                                                                                                  |   |                     |       |   |                        |   |   |   |
| Stockholders’ equity                                                                                                                                                                                                                                                            |   |                     |       |   |                        |   |   |   |
| Convertible preferred stock - Series A – par value $.001 per share; authorized 1,000,000 shares; 200,000 shares designated Series A; no shares issued, and outstanding                                                                                                          |   |                     | -          |   |                        |   | - |   |
| Convertible preferred stock - Series B – par value $.001 per share; authorized 1,000,000 shares; 625,000 shares designated Series B; 368,837 and 365,265 shares issued, and outstanding respectively (aggregate liquidation preference $3,485,746 and $3,451,754, respectively) |   |                     | 369        |   |                        |   | 365 |   |
| Common stock – par value $.001 per share; authorized 50,000,000 shares; 10,577,719 and 10,278,934 shares issued and outstanding                                                                                                                                                 |   |                     | 10,578     |   |                        |   | 10,279 |   |
| Additional paid-in capital                                                                                                                                                                                                                                                            |   |                     | 10,678,774 |   |                        |   | 9,540,036 |   |
| Accumulated deficit                                                                                                                                                                                                                                                                   |   |                     | (9,642,372 | )      |                        |   | (8,510,093 | ) |
| Total stockholders’ equity                                                                                                                                                                                                                                                      |   |                     | 1,047,349  |   |                        |   | 1,040,587 |   |
| Total liabilities and stockholders’ equity                                                                                                                                                                                                                                      |   | $                        | 3,245,302  |   |                        | $      | 2,936,012 |   |

----

|                                                                             |   | For the Three MonthsEndedMarch 31, 2011 |       |   | For the Three MonthsEndedMarch 31, 2010 |   |
|----------------------------------------------------------------------------------|--------|------------------------------------------------------------------|------------|--------|------------------------------------------------------------------|--------|
|                                                                             |   |                                                             |       |   |                                                             |   |
| Net sales                                                                        |   | $                                                                | 2,284,552  |   |                                                             | $      | 1,253,549 |   |
|                                                                             |   |                                                             |       |   |                                                             |   |   |   |
| Cost of sales                                                                    |   |                                                             | 1,298,143  |   |                                                             |   | 607,415 |   |
| Gross profit                                                                     |   |                                                             | 986,409    |   |                                                             |   | 646,134 |   |
|                                                                             |   |                                                             |       |   |                                                             |   |   |   |
| Operating expenses:                                                              |   |                                                             |       |   |                                                             |   |   |   |
|                                                                             |   |                                                             |       |   |                                                             |   |   |   |
| Selling, general and administrative expenses                                     |   |                                                             | 1,953,698  |   |                                                             |   | 898,818 |   |
|                                                                             |   |                                                             |       |   |                                                             |   |   |   |
| Loss from operations                                                             |   |                                                             | (967,289   | )      |                                                             |   | (252,684 | ) |
|                                                                             |   |                                                             |       |   |                                                             |   |   |   |
| Other income (expense):                                                          |   |                                                             |       |   |                                                             |   |   |   |
| Interest income                                                                  |   |                                                             | 1,162      |   |                                                             |   | 166 |   |
| Interest expense                                                                 |   |                                                             | (105,152   | )      |                                                             |   | (66,388 | ) |
| Total other expense                                                              |   |                                                             | (103,990   | )      |                                                             |   | (66,222 | ) |
|                                                                             |   |                                                             |       |   |                                                             |   |   |   |
| Net loss                                                                         |   | $                                                                | (1,071,279 | )      |                                                             | $      | (318,906 | ) |
|                                                                             |   |                                                             |       |   |                                                             |   |   |   |
| Series B Convertible Preferred Stock:                                            |   |                                                             |       |   |                                                             |   |   |   |
| Contractual dividends                                                            |   |                                                             | (61,000    | )      |                                                             |   | - |   |
|                                                                             |   |                                                             |       |   |                                                             |   |   |   |
| Loss attributable to common stockholders                                         |   | $                                                                | (1,132,279 | )      |                                                             | $      | (318,906 | ) |
|                                                                             |   |                                                             |       |   |                                                             |   |   |   |
| Per share data:                                                                  |   |                                                             |       |   |                                                             |   |   |   |
| Net loss per common share from operations - Basic and diluted                    |   | $                                                                | (0.10      | )      |                                                             | $      | (0.03 | ) |
| Series B convertible preferred stock contractual dividends                       |   |                                                             | (0.01      | )      |                                                             |   | - |   |
| Net loss attributable to common stockholders per share – basic and diluted |   | $                                                                | (0.11      | )      |                                                             | $      | (0.03 | ) |
|                                                                             |   |                                                             |       |   |                                                             |   |   |   |
| Weighted average number of common shares outstanding - Basic and diluted         |   |                                                             | 10,487,046 |   |                                                             |   | 9,890,761 |   |

----

|                                                                     |   | For the Three MonthsEnded March 31, 2011 |       |   | For the Three MonthsEnded March 31, 2010 |   |
|--------------------------------------------------------------------------|--------|------------------------------------------------------------------------|------------|--------|------------------------------------------------------------------------|--------|
| Cash flows from operating activities                                     |   |                                                                   |       |   |                                                                   |   |
| Net loss                                                                 |   | $                                                                      | (1,071,279 | )      |                                                                   | $      | (318,906 | ) |
| Adjustments to reconcile net loss to net cash from operating activities: |   |                                                                   |       |   |                                                                   |   |   |   |
| Provision for doubtful accounts                                          |   |                                                                   | 30,000     |   |                                                                   |   | - |   |
| Depreciation and amortization                                            |   |                                                                   | 71,009     |   |                                                                   |   | 47,172 |   |
| Stock-based compensation                                                 |   |                                                                   | 211,714    |   |                                                                   |   | 97,089 |   |
| Amortization of deferred debt discount                                   |   |                                                                   | 86,775     |   |                                                                   |   | 46,823 |   |
| Changes in operating assets and liabilities:                             |   |                                                                   |       |   |                                                                   |   |   |   |
| Accounts receivable                                                      |   |                                                                   | (132,814   | )      |                                                                   |   | (241,265 | ) |
| Inventories - finished goods                                             |   |                                                                   | 65,757     |   |                                                                   |   | (214,669 | ) |
| Prepaid expenses and other current assets                                |   |                                                                   | 2,445      |   |                                                                   |   | 62,057 |   |
| Accounts payable – trade                                           |   |                                                                   | 479,359    |   |                                                                   |   | 51,138 |   |
| Accounts payable – related parties                                 |   |                                                                   | 33,850     |   |                                                                   |   | 215,510 |   |
| Accrued expenses and other current liabilities                           |   |                                                                   | (124,464   | )      |                                                                   |   | 25,844 |   |
| Net cash used in operating activities                                    |   |                                                                   | (347,648   | )      |                                                                   |   | (229,207 | ) |
|                                                                     |   |                                                                   |       |   |                                                                   |   |   |   |
| Cash flow from investing activities                                      |   |                                                                   |       |   |                                                                   |   |   |   |
| Acquisition of Hocks.com assets                                          |   |                                                                   | (200,000   | )      |                                                                   |   | - |   |
| Employee advance                                                         |   |                                                                   | (6,142     | )      |                                                                   |   | - |   |
| Refund from the return of property and equipment                    |   |                                                                   | 15,732     |   |                                                                   |   | - |   |
| Acquisition of property and equipment                                    |   |                                                                   | (30,997    | )      |                                                                   |   | (15,974 | ) |
| Net cash used in investing activities                                    |   |                                                                   | (221,407   | )      |                                                                   |   | (15,974 | ) |
|                                                                     |   |                                                                   |       |   |                                                                   |   |   |   |
| Cash flows from financing activities                                     |   |                                                                   |       |   |                                                                   |   |   |   |
| Advances from former director                                            |   |                                                                   | -          |   |                                                                   |   | 54,000 |   |
| Net cash provided by financing activities                                |   |                                                                   | -          |   |                                                                   |   | 54,000 |   |
|                                                                     |   |                                                                   |       |   |                                                                   |   |   |   |
| Net decrease in cash                                                     |   |                                                                   | (569,055   | )      |                                                                   |   | (191,181 | ) |
|                                                                     |   |                                                                   |       |   |                                                                   |   |   |   |
| Cash - beginning of period                                               |   |                                                                   | 1,397,583  |   |                                                                   |   | 191,181 |   |
|                                                                     |   |                                                                   |       |   |                                                                   |   |   |   |
| Cash - end of period                                                     |   | $                                                                      | 828,528    |   |                                                                   | $      | - |   |
|                                                                     |   |                                                                   |       |   |                                                                   |   |   |   |
| Cash paid for:                                                           |   |                                                                   |       |   |                                                                   |   |   |   |
| Interest                                                                 |   | $                                                                      | 9,117      |   |                                                                   | $      | - |   |
| Taxes                                                                    |   | $                                                                      | -          |   |                                                                   | $      | - |   |
|                                                                     |   |                                                                   |       |   |                                                                   |   |   |   |
| Non-cash investing and financing activities:                             |   |                                                                   |       |   |                                                                   |   |   |   |
| Conversion of convertible notes to common stock                          |   | $                                                                      | 200,000    |   |                                                                   | $      | - |   |
| Exchange of common stock to acquire assets of  Hocks.com       |   | $                                                                      | 693,335    |   |                                                                   | $      | - |   |
| Issuance of series B preferred stock for settlement of accrued dividends |   | $                                                                      | 33,992     |   |                                                                   | $      | - |   |
| Accrual of series B preferred stock contractual dividend                 |   | $                                                                      | 61,000     |   |                                                                   | $      | - |   |
|                                                                     |   |                                                                   |       |   |                                                                   |   |   |   |
| Purchase price allocation:                                               |   |                                                                   |       |   |                                                                   |   |   |   |
|                                                                     |   |                                                                   |       |   |                                                                   |   |   |   |
| Current assets - Inventory                                               |   | $                                                                      | 200,000    |   |                                                                   |   |   |   |
| Customer relationships                                                   |   |                                                                   | 693,335    |   |                                                                   |   |   |   |
| Net fair value of assets acquired/Total purchase price                   |   | $                                                                      | 893,335    |   |                                                                   |   |   |   |

----

----

----

|                         |   | March 31, 2011 |      |   | March 31, 2010 |   |
|------------------------------|--------|----------------|-----------|--------|----------------|--------|
|                         |   |           |      |   |           |   |
| Options                      |   |           | 2,263,800 |   |           |   | 1,509,300 |   |
| Warrants                     |   |           | 1,915,340 |   |           |   | 312,500 |   |
| Convertible Preferred Stock  |   |           | 1,844,310 |   |           |   | 53,751 |   |
| Convertible Promissory Notes |   |           | 12,500    |   |           |   | 396,381 |   |
| Total                        |   |           | 6,035,950 |   |           |   | 2,271,932 |   |

|                                    |   | For the ThreeMonths EndedMarch 31, 2011 |   |   | For the ThreeMonths EndedMarch 31, 2010 |   |
|-----------------------------------------|--------|------------------------------------------------------------------|--------|--------|------------------------------------------------------------------|--------|
| Risk-free interest rate                 |   |                                                             | 2.72   | %      |                                                             |   | 2.32 | % |
| Dividend yield                          |   |                                                             | N/A    |   |                                                             |   | N/A |   |
| Expected volatility                     |   |                                                             | 55.2   | %      |                                                             |   | 57.6 | % |
| Expected life in years                  |   |                                                             | 6.00   |   |                                                             |   | 6.00 |   |
| Expected forfeiture rate (through term) |   |                                                             | 0      | %      |                                                             |   | 0 | % |

| Customer relationships         |   | $      | 693,335 |   |
|--------------------------------|--------|--------|---------|--------|
| Less: accumulated amortization |   |   | (16,508 | )      |
| Intangible assets, net         |   | $      | 676,827 |   |

----

| Year ended December 31, |   |
|-------------------------|--------|
|                    |   |   |   |
| 2011                    |   | $ | 74,286 |   |
| 2012                    |   |   | 99,048 |   |
| 2013                    |   |   | 99,048 |   |
| 2014                    |   |   | 99,048 |   |
| 2015                    |   |   | 99,048 |   |
| Thereafter              |   |   | 206,349 |   |
|                    |   | $ | 676,827 |   |

----

|                                   |   | Shares |      |   | WeightedAverageExercisePrice |   |    | Weighted-AverageRemainingContractualTerm |   |   | AggregateIntrinsicValue |   |
|----------------------------------------|--------|--------|-----------|--------|------------------------------|--------|---------|------------------------------------------|--------|--------|-------------------------|--------|
|                                   |   |   |      |   |                         |   |    |                                     |   |   |                    |   |
| Options outstanding at January 1, 2011 |   |   | 1,996,300 |   |                         | $      | 2.14    |                                     |   |   | 6.92                    |   |   |   | - |   |
| Granted                                |   |   | 305,000   |   |                         | $      | 4.10    |                                     |   |   | —                 |   |   |   | - |   |
| Expired                                |   |   | —   |   |                         |   | — |                                     |   |   | —                 |   |   |   | - |   |
| Canceled                               |   |   | (37,500   | )      |                         | $      | 3.03    |                                     |   |   | —                 |   |   |   | - |   |
| Exercised                         |   |   | —   |   |                         |   | — |                                     |   |   | —                 |   |   |   | - |   |
| Options outstanding at March 31, 2011  |   |   | 2,263,800 |   |                         |   | 2.40    |                                     |   |   | 7.16                    |   |   | $ | 6,712,460 |   |
| Options exercisable at March 31, 2011  |   |   | 693,931   |   |                         | $      | 1.50    |                                     |   |   | 5.61                    |   |   | $ | 2,778,689 |   |

| Range of Exercise |   | Number Outstanding |      |   | WeightedAverageRemaining Yearsof ContractualLife |   |   | WeightedAverageExercisePrice |   |   | NumberExercisable |   |   | WeightedAverageExercisePrice |    |
|-----------------------------|--------|-------------------------|-----------|--------|------------------------------------------------------------|--------|--------|------------------------------|--------|--------|-------------------|--------|--------|------------------------------|---------|
|                        |   |                    |      |   |                                                       |   |   |                         |   |   |              |   |   |                         |    |
| $0.80 – 2.00          |   |                    | 896,800   |   |                                                       |   | 7.01   |                         |   | $      | 1.44              |   |   |                         | 509,782 |   |   | $ | 1.17 |   |
| $2.00 – 4.10          |   |                    | 1,367,000 |   |                                                       |   | 6.84   |                         |   | $      | 3.03              |   |   |                         | 184,149 |   |   | $ | 2.39 |   |
| $0.80 – $4.10         |   |                    | 2,263,800 |   |                                                       |   | 7.16   |                         |   | $      | 2.40              |   |   |                         | 693,931 |   |   | $ | 1.50 |   |

----

| Current assets - inventory                                              |   | $      | 200,000 |   |
|-------------------------------------------------------------------------|--------|--------|---------|--------|
| Customer relationships                                                  |   |   | 693,335 |   |
| Net fair value of assets acquired and total purchase price              |   | $      | 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 |   |

----

|                                                                 |   | For the three months ended March 31, |       |
|----------------------------------------------------------------------|--------|--------------------------------------------------------------------|------------|
|                                                                 |   | 2011(unaudited)                                                    |       |   | 2010(unaudited) |   |
|                                                                 |   |                                                               |       |   |   |   |
| Revenue                                                              |   | $                                                                  | 2,618,506  |   |   | $ | 2,382,514 |   |
|                                                                 |   |                                                               |       |   |   |   |   |   |
| Net loss                                                             |   | $                                                                  | (1,078,476 | ) |   | $ | (326,124 | ) |
|                                                                 |   |                                                               |       |   |   |   |   |   |
| Pro-forma basic and diluted net loss per common share                |   | $                                                                  | (0.10      | ) |   | $ | (0.03 | ) |
|                                                                 |   |                                                               |       |   |   |   |   |   |
| Weighted average common shares outstanding – basic and diluted |   |                                                               | 10,653,713 |   |   |   | 10,057,428 |   |

----

|   | · | a range of prescription drugs; |
|--------|--------|--------------------------------|

|   | · | diabetic supplies including glucometers, lancets, syringes and test strips; |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | OTC medications covering a range of conditions from allergy and sinus to pain and fever to smoking cessation aids; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|

|   | · | home medical supplies including incontinence supplies, first aid kits and mobility aids; and |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | · | diet and nutritional products including supplements, weight loss aids, and vitamins and minerals. |
|--------|--------|---------------------------------------------------------------------------------------------------|

----

|                                                       |   | The threemonths endedMarch 31,2011 |       |   | % of Revenue |   |   | The threemonths endedMarch 31,2010 |   |   | % of Revenue |    |
|-----------------------------------------------------------------|--------|---------------------------------------------------|------------|--------|------------------------|--------|--------|---------------------------------------------------|--------|--------|-------------------|---------|
|                                                       |   |                                              |       |   |                   |   |   |                                              |   |   |              |    |
| Revenue                                                    |   | $                                                 | 2,284,552  |   |                   |   | 100.0  | %                                                 |   | $      | 1,253,549         |    |   |   | 100.0 | % |
| Cost of sales                                              |   |                                              | 1,298,143  |   |                   |   | 56.8   | %                                                 |   |   | 607,415           |    |   |   | 48.5 | % |
| Gross profit                                               |   |                                              | 986,409    |   |                   |   | 43.2   | %                                                 |   |   | 646,134           |    |   |   | 51.5 | % |
| Selling, general & administrative  expenses  |   |                                              | 1,953,698  |   |                   |   | 85.5   | %                                                 |   |   | 898,818           |    |   |   | 71.7 | % |
| Loss from operations                                       |   |                                              | (967,289   | )      |                   |   | (42.3  | )%                                                |   |   | (252,684          | )       |   |   | (20.2 | )% |
| Interest income                                                 |   |                                              | 1,162      |   |                   |   | 0.1    | %                                                 |   |   | 166               |    |   |   |   |   |
| Interest expense                                                |   |                                              | (105,152   | )      |                   |   | (4.6   | )%                                                |   |   | (66,388           | )  |   |   |   |   |
| Net loss                                                   |   | $                                                 | (1,071,279 | )      |                   |   | (46.9  | )%                                                |   | $      | (318,906          | )       |   |   | (25.4 | )% |

|                              | The three monthsended March 31, 2011 |      | %Change |   |   | The three monthsended March 31, 2010 |   |
|-----------------------------------|---------------------------------------------------------------|-----------|---------|--------|--------|---------------------------------------------------------------|--------|
| Total revenue                     | $                                                             | 2,284,552 |    |   | 82.2   | %                                                        |   | $ | 1,253,549 |   |
| Total average net sales per order | $                                                             | 55.58     |    |   | (33.1  | )%                                                            |   | $ | 83.02 |   |

|                           |   | The threemonths endedMarch 31, 2011 |      |   | %Change |   |   | The threemonths endedMarch 31,2010 |   |
|-------------------------------------|--------|---------------------------------------------------------|-----------|--------|---------|--------|--------|---------------------------------------------------|--------|
| Total cost of sales            |   | $                                                       | 1,298,143 |   |    |   | 113.8  | %                                                 |   | $ | 607,415 |   |
| Total gross profit dollars     |   | $                                                       | 986,409   |   |    |   | 52.7   | %                                                 |   | $ | 646,134 |   |
| Total gross margin percentage  |   |                                                    | 43.2      | %      |    |   | (8.3   | )%                                                |   |   | 51.5 | % |

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|                                                        |   | The three monthsended March 31,2011 |      |   | %Change |   |   | The three monthsended March 31,2010 |   |
|-------------------------------------------------------------|--------|---------------------------------------------------------|-----------|--------|---------|--------|--------|---------------------------------------------------------|--------|
| Selling, general and administrative expenses |   | $                                                       | 1,953,698 |   |    |   | 117.4  | %                                                       |   | $ | 898,818 |   |
| Percentage of revenue                                       |   |                                                    | 85.5      | %      |    |   | 13.8   | %                                                       |   |   | 71.7 | % |

|             |   | The three monthsendedMarch 31, 2011 |    |   | %Change |   |   | The three monthsendedMarch 31, 2010 |   |
|------------------|--------|---------------------------------------------------------|---------|--------|---------|--------|--------|---------------------------------------------------------|--------|
| Interest income  |   | $                                                       | 1,162   |   |    |   | N/A    |                                                    |   | $ | 166 |   |
| Interest expense |   | $                                                       | 105,152 |   |    |   | 58.4   | %                                                       |   | $ | 66,388 |   |

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| ·  | Financial Reporting Systems:  We did not maintain a fully integrated financial consolidation and reporting system throughout the period and as a result, extensive manual analysis, reconciliation and adjustments were required in order to produce financial statements for external reporting purposes. |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·  | Accounting for Complex Transactions:   We lack adequately trained accounting personnel with appropriate United States generally accepted accounting principles (US GAAP) expertise for complex transactions. |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·  | Segregation of Duties:  We do not currently have a sufficient complement of technical accounting and external reporting personnel commensurate to support standalone external financial reporting under public company or SEC requirements.  Specifically, the Company did not effectively segregate certain accounting duties due to the small size of its accounting staff, and maintain a sufficient number of adequately trained personnel necessary to anticipate and identify risks critical to financial reporting and the closing process.  In addition, there were inadequate reviews and approvals by the Company's personnel of certain reconciliations and other processes in day-to-day operations due to the lack of a full complement of accounting staff. |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·  | Policies and Procedures:  We have not commenced design, implementation and documentation of the policies and procedures used for external financial reporting, accounting and income tax purposes. |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Exhibit Number and Description |
|--------|--------------------------------|

|   | 31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act. |
|--------|------|---------------------------------------------------------------------------------------------|

|   | 31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act. |
|--------|------|---------------------------------------------------------------------------------------------|

|   | 32.1 | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act. |
|--------|------|---------------------------------------------------------------------------------------------|

|   | 32.2 | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act. |
|--------|------|---------------------------------------------------------------------------------------------|

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| HEALTHWAREHOUSE.COM, INC. |
|---------------------------|
|                      |   |
| By:                       | /s/ Lalit Dhadphale |
|                      | Lalit Dhadphale |
|                      | President and Chief Executive Officer |
|                      | (principal executive officer) |
|                      |   |
| By:                       | /s/ Patrick E. Delaney |
|                      | Patrick E. Delaney |
|                      | Chief Financial Officer and Treasurer |
|                      | (principal financial and accounting officer) |

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|   | Exhibit Number and Description |
|--------|--------------------------------|

|   | 31.1 * | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act. |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | 31.2 * | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act. |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | 32.1 * | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act. |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | 32.2 * | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act. |
|--------|--------|---------------------------------------------------------------------------------------------|

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