----

----

| Chief Executive Officer | Chief Financial Officer |
|-------------------------|-------------------------|

| (signed) "Edward Wright"                  | (signed) "Richard Bear"                 |
|--------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|

----

|        |                                                                                                 |                                                                                             |   |   |   |
|--------|------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|--------|--------|--------|
|   | KPMG LLPChartered Professional AccountantsPO Box 10426 777 Dunsmuir StreetVancouver BC V7Y 1K3Canada | Telephone   (604) 691-3000Fax  (604) 691-3031Internet  www.kpmg.ca |   |   |   |   |

|   | KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG Canada provides services to KPMG LLP. |   |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

|  | CRH Medical CorporationPage 2 |
|--|-------------------------------|

----

----

|                                                     |   | Notes  |   |   | 2015   |        |   | 2014   |   |
|----------------------------------------------------------|--------|--------|--------|--------|--------|-------------|--------|--------|--------|
|                                                     |   |        |   |   |        |        |   |        |   |
| Assets                                                   |   |        |   |   |        |        |   |        |   |
|                                                     |   |        |   |   |        |        |   |        |   |
| Current assets:                                          |   |        |   |   |        |        |   |        |   |
| Cash and cash equivalents                                |   |        |   |   | $      | 3,572,344   |   |   | $      | 4,133,663 |   |
| Trade and other receivables                              |   | 8      |   |   |   | 7,091,549   |   |   |   | 5,718,651 |   |
| Prepaid expenses and deposits                            |   |   |   |   |   | 484,795     |   |   |   | 181,923 |   |
| Inventories                                              |   |   |   |   |   | 254,924     |   |   |   | 614,337 |   |
|                                                     |   |   |   |   |   | 11,403,612  |   |   |   | 10,648,574 |   |
|                                                     |   |   |   |   |   |        |   |   |   |   |   |
| Non-current assets:                                      |   |   |   |   |   |        |   |   |   |   |   |
| Property and equipment                                   |   | 10     |   |   |   | 284,706     |   |   |   | 129,864 |   |
| Intangible assets                                        |   | 11     |   |   |   | 87,307,267  |   |   |   | 65,604,729 |   |
| Other asset                                              |   |   |   |   |   | -           |   |   |   | 1,550,940 |   |
| Deferred tax assets                                      |   | 15     |   |   |   | 5,499,693   |   |   |   | 1,030,183 |   |
|                                                     |   |   |   |   |   | 93,091,666  |   |   |   | 68,315,716 |   |
|                                                     |   |   |   |   |   |        |   |   |   |   |   |
| Total assets                                             |   |   |   |   | $      | 104,495,278 |   |   | $      | 78,964,290 |   |
|                                                     |   |   |   |   |   |        |   |   |   |   |   |
| Liabilities                                              |   |   |   |   |   |        |   |   |   |   |   |
|                                                     |   |   |   |   |   |        |   |   |   |   |   |
| Current liabilities:                                     |   |   |   |   |   |        |   |   |   |   |   |
| Trade and other payables                                 |   | 9      |   |   | $      | 3,034,363   |   |   | $      | 6,051,213 |   |
| Employee benefits                                        |   |   |   |   |   | 142,576     |   |   |   | 105,930 |   |
| Current tax liabilities                                  |   | 15     |   |   |   | 869,556     |   |   |   | 193,612 |   |
| Notes payable and bank indebtedness                      |   | 12,18  |   |   |   | 3,818,048   |   |   |   | 6,613,300 |   |
| Short term advances                                      |   |   |   |   |   | -           |   |   |   | 262,482 |   |
| Loan                                                     |   | 4      |   |   |   | 266,994     |   |   |   | - |   |
|                                                     |   |   |   |   |   | 8,131,537   |   |   |   | 13,226,537 |   |
|                                                     |   |   |   |   |   |        |   |   |   |   |   |
| Non-current liabilities:                                 |   |   |   |   |   |        |   |   |   |   |   |
| Notes payable and bank indebtedness                      |   | 12,18  |   |   |   | 26,920,418  |   |   |   | 39,509,431 |   |
| Earn-out obligation                                      |   | 18     |   |   |   | 12,468,958  |   |   |   | 7,440,960 |   |
|                                                     |   |   |   |   |   | 39,389,376  |   |   |   | 46,950,391 |   |
|                                                     |   |   |   |   |   |        |   |   |   |   |   |
| Equity                                                   |   |   |   |   |   |        |   |   |   |   |   |
| Share capital                                            |   | 14     |   |   |   | 51,066,044  |   |   |   | 25,913,839 |   |
| Contributed surplus                                      |   |   |   |   |   | 6,556,951   |   |   |   | 5,847,564 |   |
| Accumulated other comprehensive income (loss)            |   |   |   |   |   | (66,772     | )      |   |   | (66,772 | ) |
| Deficit                                                  |   |   |   |   |   | (9,831,078  | )      |   |   | (12,907,269 | ) |
| Total equity attributable to shareholders of the Company |   |   |   |   |   | 47,725,145  |   |   |   | 18,787,362 |   |
| Non-controlling interest                                 |   |   |   |   |   | 9,249,220   |   |   |   | - |   |
| Total equity                                             |   |   |   |   |   | 56,974,365  |   |   |   | 18,787,362 |   |
|                                                     |   |   |   |   |   |        |   |   |   |   |   |
| Total liabilities and equity                             |   |   |   |   | $      | 104,495,278 |   |   | $      | 78,964,290 |   |

| (signed) "Edward Wright"                | Director                                                       | (signed) "Anthony Holler"                            Director |
|--------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Edward Wright | Anthony Holler |
|---------------|----------------|

----

----

|                                            |   | Notes  |   |   | 2015   |       |   | 2014   |   |
|-------------------------------------------------|--------|--------|--------|--------|--------|------------|--------|--------|--------|
|                                            |   |        |   |   |        |       |   |        |   |
| Revenue:                                        |   |        |   |   |        |       |   |        |   |
| Anesthesia services                             |   | 21     |   |   | $      | 36,496,035 |   |   | $      | 3,386,073 |   |
| Product sales                                   |   | 21     |   |   |   | 9,552,445  |   |   |   | 8,598,097 |   |
|                                            |   |   |   |   |   | 46,048,480 |   |   |   | 11,984,170 |   |
|                                            |   |   |   |   |   |       |   |   |   |   |   |
| Expenses:                                       |   |   |   |   |   |       |   |   |   |   |   |
| Anesthesia services expense                     |   | 5      |   |   |   | 23,103,493 |   |   |   | 1,713,262 |   |
| Product sales expense                           |   | 6      |   |   |   | 4,369,144  |   |   |   | 3,970,930 |   |
| Corporate expense                               |   | 7      |   |   |   | 5,144,657  |   |   |   | 3,322,085 |   |
|                                            |   |   |   |   |   | 32,617,294 |   |   |   | 9,006,277 |   |
|                                            |   |   |   |   |   |       |   |   |   |   |   |
| Operating income                                |   |   |   |   |   | 13,431,186 |   |   |   | 2,977,893 |   |
|                                            |   |   |   |   |   |       |   |   |   |   |   |
| Finance income                                  |   | 17     |   |   |   | (2,737,964 | )      |   |   | (410,208 | ) |
| Finance expense                                 |   | 17     |   |   |   | 15,822,292 |   |   |   | 2,033,667 |   |
|                                            |   |   |   |   |   | 13,084,328 |   |   |   | 1,623,459 |   |
|                                            |   |   |   |   |   |       |   |   |   |   |   |
| Income before tax                               |   |   |   |   |   | 346,858    |   |   |   | 1,354,434 |   |
|                                            |   |   |   |   |   |       |   |   |   |   |   |
| Income tax expense (recovery)                   |   | 15     |   |   |   | (2,912,970 | )      |   |   | (143,719 | ) |
|                                            |   |   |   |   |   |       |   |   |   |   |   |
| Net and comprehensive income                    |   |   |   |   | $      | 3,259,828  |   |   | $      | 1,498,153 |   |
|                                            |   |   |   |   |   |       |   |   |   |   |   |
| Attributable to:                                |   |   |   |   |   |       |   |   |   |   |   |
| Shareholders of the Company                     |   |   |   |   | $      | 3,076,191  |   |   | $      | 1,498,153 |   |
| Non-controlling interest                        |   |   |   |   |   | 183,637    |   |   |   | - |   |
|                                            |   |   |   |   | $      | 3,259,828  |   |   | $      | 1,498,153 |   |
|                                            |   |   |   |   |   |       |   |   |   |   |   |
| Earnings per share attributable to shareholders |   |   |   |   |   |       |   |   |   |   |   |
| Basic                                           |   | 14(e)  |   | $      | 0.045  |       |   | $      | 0.031  |   |
| Diluted                                         |   | 14(e)  |   | $      | 0.043  |       |   | $      | 0.030  |   |
|                                            |   |   |   |   |   |       |   |   |   |   |   |
| Weighted average shares outstanding:            |   |   |   |   |   |       |   |   |   |   |   |
| Basic                                           |   |   |   |   |   | 67,870,529 |   |   |   | 48,876,822 |   |
| Diluted                                         |   |   |   |   |   | 70,772,341 |   |   |   | 49,835,377 |   |

----

----

|                                                                                   |   | Number of shares |       |   | Share capital |   |       | Contributed surplus |   |   | Accumulated other comprehensive income (loss) |   |   | Deficit |    |   | Non-controlling interest |   |        | Total equity |   |
|----------------------------------------------------------------------------------------|--------|------------------|------------|--------|---------------|--------|------------|---------------------|--------|--------|-----------------------------------------------|--------|--------|---------|---------|--------|--------------------------|--------|-------------|--------------|--------|
|                                                                                   |   |                  |       |   |               |   |       |                     |   |   |                                               |   |   |         |    |   |                          |   |        |              |   |
| Balance as at January 1, 2014                                                          |   |             | 48,746,914 |   |          | $      | 17,181,474 |                |   | $      | 5,570,839                                     |   |   | $       | (66,772 | )      |                     | $      | (14,405,422 | )            |   | $ | - |   |   | $ | 8,280,119 |   |
|                                                                                   |   |             |       |   |          |   |       |                |   |   |                                          |   |   |    |    |   |                     |   |        |         |   |   |   |   |   |   |   |   |
| Total net and comprehensive income for the year                                        |   |             | -          |   |          |   | -          |                |   |   | -                                             |   |   |    | -       |   |                     |   | 1,498,153   |         |   |   | - |   |   |   | 1,498,153 |   |
|                                                                                   |   |             |       |   |          |   |       |                |   |   |                                          |   |   |    |    |   |                     |   |        |         |   |   |   |   |   |   |   |   |
| Transactions with owners, recorded directly in equity:                                 |   |             |       |   |          |   |       |                |   |   |                                          |   |   |    |    |   |                     |   |        |         |   |   |   |   |   |   |   |   |
|                                                                                   |   |             |       |   |          |   |       |                |   |   |                                          |   |   |    |    |   |                     |   |        |         |   |   |   |   |   |   |   |   |
| Stock-based compensation expense                                                       |   |             | -          |   |          |   | -          |                |   |   | 362,239                                       |   |   |    | -       |   |                     |   | -           |         |   |   | - |   |   |   | 362,239 |   |
|                                                                                   |   |             |       |   |          |   |       |                |   |   |                                          |   |   |    |    |   |                     |   |        |         |   |   |   |   |   |   |   |   |
| Common shares purchased on exercise of options                                         |   |             | 167,188    |   |          |   | 224,985    |                |   |   | (85,514                                       | )      |   |    | -       |   |                     |   | -           |         |   |   | - |   |   |   | 139,471 |   |
|                                                                                   |   |             |       |   |          |   |       |                |   |   |                                          |   |   |    |    |   |                     |   |        |         |   |   |   |   |   |   |   |   |
| Shares issued through private placement, net of fees                                   |   |             | 6,967,845  |   |          |   | 4,919,480  |                |   |   | -                                             |   |   |    | -       |   |                     |   | -           |         |   |   | - |   |   |   | 4,919,480 |   |
|                                                                                   |   |             |       |   |          |   |       |                |   |   |                                          |   |   |    |    |   |                     |   |        |         |   |   |   |   |   |   |   |   |
| Shares issued to lenders                                                               |   |             | 5,000,000  |   |          |   | 3,587,900  |                |   |   | -                                             |   |   |    | -       |   |                     |   | -           |         |   |   | - |   |   |   | 3,587,900 |   |
|                                                                                   |   |             |       |   |          |   |       |                |   |   |                                          |   |   |    |    |   |                     |   |        |         |   |   |   |   |   |   |   |   |
| Balance as at December 31, 2014                                                        |   |             | 60,881,947 |   |          |   | 25,913,839 |                |   |   | 5,847,564                                     |   |   |    | (66,772 | )      |                     |   | (12,907,269 | )            |   |   | - |   |   |   | 18,787,362 |   |
|                                                                                   |   |             |       |   |          |   |       |                |   |   |                                          |   |   |    |    |   |                     |   |        |         |   |   |   |   |   |   |   |   |
| Total net and comprehensive income for the year                                        |   |             | -          |   |          |   | -          |                |   |   | -                                             |   |   |    | -       |   |                     |   | 3,076,191   |         |   |   | 183,637 |   |   |   | 3,259,828 |   |
|                                                                                   |   |             |       |   |          |   |       |                |   |   |                                          |   |   |    |    |   |                     |   |        |         |   |   |   |   |   |   |   |   |
| Transactions with owners, recorded directly in equity:                                 |   |             |       |   |          |   |       |                |   |   |                                          |   |   |    |    |   |                     |   |        |         |   |   |   |   |   |   |   |   |
|                                                                                   |   |             |       |   |          |   |       |                |   |   |                                          |   |   |    |    |   |                     |   |        |         |   |   |   |   |   |   |   |   |
| Stock based compensation expense                                                       |   |             | -          |   |          |   | -          |                |   |   | 2,749,452                                     |   |   |    | -       |   |                     |   | -           |         |   |   | - |   |   |   | 2,749,452 |   |
|                                                                                   |   |             |       |   |          |   |       |                |   |   |                                          |   |   |    |    |   |                     |   |        |         |   |   |   |   |   |   |   |   |
| Common shares purchased on exercise of options                                         |   |             | 758,193    |   |          |   | 1,051,233  |                |   |   | (393,960                                      | )      |   |    | -       |   |                     |   | -           |         |   |   | - |   |   |   | 657,273 |   |
|                                                                                   |   |             |       |   |          |   |       |                |   |   |                                          |   |   |    |    |   |                     |   |        |         |   |   |   |   |   |   |   |   |
| Common shares issued on vesting of share units                                         |   |             | 1,000,000  |   |          |   | 1,750,000  |                |   |   | (1,750,000                                    | )      |   |    | -       |   |                     |   | -           |         |   |   | - |   |   |   | - |   |
|                                                                                   |   |             |       |   |          |   |       |                |   |   |                                          |   |   |    |    |   |                     |   |        |         |   |   |   |   |   |   |   |   |
| Shares issued through share offering, net of fees (note 14)                            |   |             | 8,050,000  |   |          |   | 20,254,709 |                |   |   | -                                             |   |   |    | -       |   |                     |   | -           |         |   |   | - |   |   |   | 20,254,709 |   |
|                                                                                   |   |             |       |   |          |   |       |                |   |   |                                          |   |   |    |    |   |                     |   |        |         |   |   |   |   |   |   |   |   |
| Deferred tax recovery on share issuance costs (note 14)                                |   |             | -          |   |          |   | 420,511    |                |   |   | -                                             |   |   |    | -       |   |                     |   | -           |         |   |   | - |   |   |   | 420,511 |   |
|                                                                                   |   |             |       |   |          |   |       |                |   |   |                                          |   |   |    |    |   |                     |   |        |         |   |   |   |   |   |   |   |   |
| Broker warrants issued in share offering (note 14)                                     |   |             | -          |   |          |   | (249,149   | )                   |   |   | 249,149                                       |   |   |    | -       |   |                     |   | -           |         |   |   | - |   |   |   | - |   |
|                                                                                   |   |             |       |   |          |   |       |                |   |   |                                          |   |   |    |    |   |                     |   |        |         |   |   |   |   |   |   |   |   |
| Exercise of broker warrants (note 14)                                                  |   |             | 140,795    |   |          |   | 508,413    |                |   |   | (145,254                                      | )      |   |    | -       |   |                     |   | -           |         |   |   | - |   |   |   | 363,159 |   |
|                                                                                   |   |             |       |   |          |   |       |                |   |   |                                          |   |   |    |    |   |                     |   |        |         |   |   |   |   |   |   |   |   |
| Common shares issued in connection with acquisition, net of transaction costs (note 4) |   |             | 375,612    |   |          |   | 1,416,488  |                |   |   | -                                             |   |   |    | -       |   |                     |   | -           |         |   |   | - |   |   |   | 1,416,488 |   |
|                                                                                   |   |             |       |   |          |   |       |                |   |   |                                          |   |   |    |    |   |                     |   |        |         |   |   |   |   |   |   |   |   |
| Acquisition of non-controlling interest (note 4)                                       |   |             | -          |   |          |   | -          |                |   |   | -                                             |   |   |    | -       |   |                     |   | -           |         |   |   | 9,065,583 |   |   |   | 9,065,583 |   |
|                                                                                   |   |             |       |   |          |   |       |                |   |   |                                          |   |   |    |    |   |                     |   |        |         |   |   |   |   |   |   |   |   |
| Balance as at December 31, 2015                                                        |   |             | 71,206,547 |   |          | $      | 51,066,044 |                |   | $      | 6,556,951                                     |   |   | $       | (66,772 | )      |                     | $      | (9,831,078  | )            |   | $ | 9,249,220 |   |   | $ | 56,974,365 |   |

----

----

|                                                            |   | Notes  |   |   | 2015   |        |   | 2014   |   |
|---------------------------------------------------------------------------|--------|--------|--------|--------|--------|-------------|--------|--------|--------|
| Cash provided by (used in)                                                |   |        |   |   |        |        |   |        |   |
|                                                                      |   |        |   |   |        |        |   |        |   |
| Operating activities:                                                     |   |        |   |   |        |        |   |        |   |
| Net and comprehensive income                                              |   |        |   |   | $      | 3,259,828   |   |   | $      | 1,498,153 |   |
| Adjustments for:                                                          |   |        |   |   |   |        |   |   |   |   |   |
| Depreciation of property, equipment and intangibles and write-offs        |   |        |   |   |   | 6,859,393   |   |   |   | 510,626 |   |
| Write-off of intangible asset                                             |   |        |   |   |   | 389,693     |   |   |   | - |   |
| Write-off of inventory                                                    |   |        |   |   |   | 240,946     |   |   |   | - |   |
| Stock based compensation                                                  |   | 14     |   |   |   | 2,749,452   |   |   |   | 362,239 |   |
| Unrealized foreign exchange (gain)                                        |   |   |   |   |   | (2,803,931  | )      |   |   | (391,680 | ) |
| Finance expense                                                           |   | 17     |   |   |   | 15,822,292  |   |   |   | 811,350 |   |
| Income tax expense (recovery)                                             |   | 15     |   |   |   | (2,912,970  | )      |   |   | (143,720 | ) |
| Operating activity before changes in operating assets and liabilities     |   |   |   |   |   | 23,604,703  |   |   |   | 2,646,968 |   |
| Taxes paid                                                                |   |   |   |   |   | (460,084    | )      |   |   | - |   |
| Change in trade and other receivables                                     |   |   |   |   |   | (1,372,898  | )      |   |   | (176,898 | ) |
| Change in prepaid expenses and deposits                                   |   |   |   |   |   | (302,872    | )      |   |   | (45,307 | ) |
| Change in inventories                                                     |   |   |   |   |   | 118,467     |   |   |   | (293,852 | ) |
| Change in trade and other payables                                        |   |   |   |   |   | (3,404,140  | )      |   |   | (996,535 | ) |
| Change in employee benefits                                               |   |   |   |   |   | 36,646      |   |   |   | (8,748 | ) |
| Change in advance                                                         |   |   |   |   |   | (262,482    | )      |   |   | 262,482 |   |
| Cash provided by operating activities                                     |   |   |   |   |   | 17,957,340  |   |   |   | 1,388,110 |   |
|                                                                      |   |   |   |   |   |        |   |   |   |   |   |
| Financing activities                                                      |   |   |   |   |   |        |   |   |   |   |   |
| Net proceeds on the issuance of shares                                    |   | 14     |   |   |   | 20,254,709  |   |   |   | 4,181,880 |   |
| Net proceeds from loans                                                   |   | 4      |   |   |   | 266,994     |   |   |   | - |   |
| Payment of interest on notes payable and bank indebtedness                |   | 12     |   |   |   | (5,903,690  | )      |   |   |   |   |
| Proceeds (repayment) of notes payable                                     |   | 12     |   |   |   | (32,000,000 | )      |   |   | 48,534,831 |   |
| Proceeds on bank indebtedness                                             |   | 12     |   |   |   | 16,514,092  |   |   |   |   |   |
| Proceeds from the exercise of broker warrants                             |   |   |   |   |   | 363,159     |   |   |   | - |   |
| Proceeds from the issuance of shares relating to stock based compensation |   |   |   |   |   | 657,273     |   |   |   | 139,471 |   |
| Cash provided by (used in) financing activities                           |   |   |   |   |   | 152,537     |   |   |   | 52,856,182 |   |
|                                                                      |   |   |   |   |   |        |   |   |   |   |   |
| Investing activities                                                      |   |   |   |   |   |        |   |   |   |   |   |
| Acquisition of property and equipment                                     |   |   |   |   |   | (184,838    | )      |   |   | (95,029 | ) |
| Cash acquired through acquisition                                         |   |   |   |   |   | -           |   |   |   | 2,011,548 |   |
| Acquisition of anesthesia services providers                              |   | 4      |   |   |   | (18,471,864 | )      |   |   | (58,623,000 | ) |
| Cash used in investing activities                                         |   |   |   |   |   | (18,656,702 | )      |   |   | (56,706,481 | ) |
|                                                                      |   |   |   |   |   |        |   |   |   |   |   |
| Effects of foreign exchange on cash and cash equivalents                  |   |   |   |   |   | (14,494     | )      |   |   | (6,946 | ) |
|                                                                      |   |   |   |   |   |        |   |   |   |   |   |
| Increase (decrease) in cash and cash equivalents                          |   |   |   |   |   | (561,319    | )      |   |   | (2,469,135 | ) |
|                                                                      |   |   |   |   |   |        |   |   |   |   |   |
| Cash and cash equivalents, beginning of period                            |   |   |   |   |   | 4,133,663   |   |   |   | 6,602,798 |   |
|                                                                      |   |   |   |   |   |        |   |   |   |   |   |
| Cash and cash equivalents, end of period                                  |   |   |   |   | $      | 3,572,344   |   |   | $      | 4,133,663 |   |

----

----

----

----

|  |  (i) | Use of estimates and assumptions: |
|--|-----------|-----------------------------------|

|  |  (ii) | Judgments: |
|--|------------|------------|

----

----

----

----

|  | (i) | Salaries and short-term employee benefits: |
|--|-----|--------------------------------------------|

----

----

| Asset                   | Basis             | Rate                     |
|-------------------------|-------------------|--------------------------|
|                    |              |                     |
| Computer equipment      | Declining balance | 30%                      |
| Computer software       | Declining balance | 100%                     |
| Furniture and equipment | Declining balance | 20%                      |
| Leasehold improvements  | Straight-line     | Shorter of initial lease |
|                    |              | term or useful life      |
| Injection mold          | Straight-line     | 5 years                  |

| Asset                                               | Basis         | Rate            |
|-----------------------------------------------------|---------------|-----------------|
|                                                |          |            |
| Intellectual property rights the CRH O'Regan System | Straight-line | 15 years        |
|                                                |          |            |
| Intellectual property new technology                | Straight-line | 20 years        |
|                                                |          |            |
| Exclusive professional services agreements          | Straight-line | 0.7 to 12 years |

----

----

----

----

----

----

----

----

----

----

----

----

|  |  (u) | New standards and interpretations not yet applied: |
|--|-----------|----------------------------------------------------|

----

----

|  | (u) | New standards and interpretations not yet applied: |
|--|-----|----------------------------------------------------|

|  |  (ii) | Annual Improvements to IFRS (2012 – 2014): |
|--|------------|--------------------------------------------------|

|  | · | Changes in method for disposal under IFRS 5 Non-current Assets Held for Sale and Discontinued Operations; |
|--|--------|-----------------------------------------------------------------------------------------------------------|

|  | · | 'Continuing involvement' for servicing contracts and offsetting disclosures in condensed interim financial statements under IFRS 7 Financial Instruments: Disclosures; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Discount rate in a regional market sharing the same currency under IAS 19 Employee Benefits; |
|--|--------|----------------------------------------------------------------------------------------------|

|  | · | Disclosure of information 'elsewhere in the interim financial report' under IAS 34 Interim Financial Reporting; |
|--|--------|-----------------------------------------------------------------------------------------------------------------|

----

----

|  | (u) | New standards and interpretations not yet applied: |
|--|-----|----------------------------------------------------|

|  | (v) | In January 2016, the IASB issued IFRS 16 – Leases, which supersedes IAS 17 – Leases. IFRS 16 establishes principles for the recognition, measurement, presentation and disclosure of leases. The standard establishes a single model for lessees to bring leases on-balance sheet while lessor accounting remains largely unchanged and retains the finance and operating lease distinctions. IFRS 16 is effective for annual periods beginning on or after January 1, 2019, with earlier adoption permitted, but only if also applying IFRS 15 – Revenue from contracts with Customers. The Company is currently evaluating the impact on IFRS 16 on its financial statements. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Acquired Operation                                                                        | Date Acquired  |   | Consideration |      |
|-------------------------------------------------------------------------------------------|----------------|--------|---------------|-----------|
| John's Creek Anesthesia LLC ("John's Creek")                                              | December 2015  |   | $             | 1,200,000 |   |
| Macon Gastroenterology Anesthesia Associates LLC ("MGAA")                                 | December 2015  |   | $             | 4,670,000 |   |
| Knoxville Gastroenterology Anesthesia Associates LLC ("KGAA")                             | September 2015 |   | $             | 6,818,352 |   |
| Associates in Digestive Health LLC ("ADH")                                                | August 2015    |   | $             | 6,600,000 |   |
| Anesthesia Healthcare Providers of Florida and AHP of North Carolina (collectively "AHP") | March 2015     |   | $             | 600,000   |   |

|                                                                 |   | AHP              |    |   | ADH     |   |      | KGAA    |   |   | MGAA       |   |   | John's Creek |      |   | Total  |   |
|----------------------------------------------------------------------|--------|------------------|---------|--------|---------|--------|-----------|---------|--------|--------|------------|--------|--------|--------------|-----------|--------|--------|--------|
| Cash                                                                 |   | $                | 600,000 |   |    | $      | 6,600,000 |    |   | $      | 5,395,700  |   |   | $            | 4,670,000 |   |   | $      | 1,200,000 |   |   | $ | 18,465,700 |   |
| Common shares                                                        |   |             | -       |   |    |   | -         |    |   |   | 1,422,652  |   |   |         | -         |   |   |   | - |   |   |   | 1,422,652 |   |
| Purchase consideration                                               |   |             | 600,000 |   |    |   | 6,600,000 |    |   |   | 6,818,352  |   |   |         | 4,670,000 |   |   |   | 1,200,000 |   |   |   | 19,888,352 |   |
| Non-controlling interest                                             |   |             | -       |   |    |   | -         |    |   |   | 6,550,968  |   |   |         | 2,514,615 |   |   |   | - |   |   |   | 9,065,583 |   |
|                                                                 |   | $                | 600,000 |   |    | $      | 6,600,000 |    |   | $      | 13,369,320 |   |   | $            | 7,184,615 |   |   | $      | 1,200,000 |   |   | $ | 28,953,935 |   |
|                                                                 |   |             |    |   |    |   |      |    |   |   |       |   |   |         |      |   |   |   |   |   |   |   |   |   |
| Assets and liabilities acquired:                                     |   |             |    |   |    |   |      |    |   |   |       |   |   |         |      |   |   |   |   |   |   |   |   |   |
| Exclusive professional services agreements                      |   |             | 600,000 |   |    |   | 6,600,000 |    |   | $      | 13,369,320 |   |   | $            | 7,152,308 |   |   | $      | 1,200,000 |   |   | $ | 28,921,628 |   |
| Inventory                                                            |   |             | -       |   |    |   | -         |    |   |   | -          |   |   |         | 32,307    |   |   |   | - |   |   |   | 32,307 |   |
| Fair value of net identifiable assets and liabilities acquired       |   | $                | 600,000 |   |    | $      | 6,600,000 |    |   | $      | 13,369,320 |   |   | $            | 7,184,615 |   |   | $      | 1,200,000 |   |   | $ | 28,953,935 |   |
|                                                                 |   |             |    |   |    |   |      |    |   |   |       |   |   |         |      |   |   |   |   |   |   |   |   |   |
| Exclusive professional services agreements – amortization term |   | 0.7 to 2.8 years |    |   | 7 years |   |      | 7 years |   |   | 5 years    |   |   | 10.9 years   |      |   |   |   |   |
| Acquisition costs expensed                                           |   | $                | 16,083  |   |    | $      | 110,727   |    |   | $      | 110,727    |   |   | $            | 61,715    |   |   | $      | 61,715 |   |   | $ | 360,967 |   |

----

----

----

----

----

----

|                           |   | Year ended December 31, 2015 |
|--------------------------------|--------|------------------------------|
|                           |   | AHP                          |   |   | ADH |   |   | KGAA |   |   | MGAA |   |   | John's Creek |   |   | Total |
|                           |   |                              |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Revenue                        |   | $                            | 1,367,980 |   |   | $ | 970,024 |   |   | $ | 2,135,066 |   |   | $ | 205,488 |   |   | $ | - |   |   | $ | 4,678,558 |
| Net earnings (loss) before tax |   | $                            | (295,770 | ) |   | $ | 142,119 |   |   | $ | 563,568 |   |   | $ | (25,924 | ) |   | $ | - |   |   | $ | 383,993 |
| Amortization                   |   | $                            | 187,948 |   |   | $ | 392,857 |   |   | $ | 636,634 |   |   | $ | 80,752 |   |   |   | - |   |   | $ | 1,298,191 |

|                              | Year ended December 31, 2015 |
|-----------------------------------|------------------------------|
| Pro Forma Information (unaudited) |                         |   |  |   |   |  |   |  |
|                              | AHP                          |   | ADH |   | KGAA |   |   | MGAA |   |   | John's Creek |   | Total |
| Revenue                           |                         | $ | 1,694,042 |   |   | $ | 2,310,018 |   |   | $ | 5,709,620 |   |   | $ | 3,571,577 |   |   | $ | 1,303,387 |   |   | $ | 14,588,644 |
| Net earnings before tax           |                         | $ | 85,870 |   |   | $ | 306,340 |   |   | $ | 1,600,094 |   |   | $ | 80,628 |   |   | $ | 623,992 |   |   | $ | 2,696,924 |
| Amortization                      |                         | $ | 244,700 |   |   | $ | 942,847 |   |   | $ | 1,909,903 |   |   | $ | 1,403,544 |   |   | $ | 109,924 |   |   | $ | 4,610,918 |

----

----

|                                                  |   |        |       |
|-------------------------------------------------------|--------|--------|------------|
| Cash                                                  |   | $      | 58,623,000 |   |
| Contingent consideration ("Earn-out obligation") |   |   | 7,339,032  |   |
| Purchase consideration                                |   |   | 65,962,032 |   |
|                                                  |   |   |       |   |
| Assets and liabilities acquired                       |   |   |       |   |
| Exclusive professional services agreements       |   |   | 65,962,032 |   |
| Cash                                                  |   |   | 2,011,548  |   |
| Pre-close trade receivables                           |   |   | 4,849,289  |   |
| Pre-close trade payables                              |   |   | (6,860,837 | ) |
| Fair value of net identifiable assets acquired        |   | $      | 65,962,032 |   |

----

----

|                                        |   | 2015   |       |   | 2014   |   |
|---------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                        |   |        |       |   |        |   |
| Employee related                            |   | $      | 9,144,390  |   |   | $      | 541,492 |   |
| Depreciation and amortization               |   |   | 6,802,971  |   |   |   | 458,070 |   |
| Bad debt expense                            |   |   | 1,981,516  |   |   |   | 338,168 |   |
| Office related                              |   |   | 3,445,313  |   |   |   | 305,412 |   |
| Write-off of professional services contract |   |   | 389,693    |   |   |   | - |   |
| Acquisition expense                         |   |   | 344,884    |   |   |   | - |   |
| Medical supplies                            |   |   | 710,963    |   |   |   | 56,210 |   |
| Stock based compensation                    |   |   | 37,539     |   |   |   | - |   |
| Professional fees                           |   |   | 206,873    |   |   |   | 13,910 |   |
| Insurance                                   |   |   | 39,051     |   |   |   | - |   |
| Foreign exchange                            |   |   | 300        |   |   |   | - |   |
|                                        |   |   |       |   |   |   |   |   |
|                                        |   | $      | 23,103,493 |   |   | $      | 1,713,262 |   |

----

----

|                          |   | 2015   |      |   | 2014   |   |
|-------------------------------|--------|--------|-----------|--------|--------|--------|
|                          |   |        |      |   |        |   |
| Employee related              |   | $      | 1,317,665 |   |   | $      | 1,358,939 |   |
| Product cost and support      |   |   | 1,956,487 |   |   |   | 1,769,182 |   |
| Write-off of inventory        |   |   | 240,946   |   |   |   | - |   |
| Professional fees             |   |   | 170,624   |   |   |   | 503,005 |   |
| Office related                |   |   | 226,898   |   |   |   | 185,350 |   |
| Stock based compensation      |   |   | 401,969   |   |   |   | 92,985 |   |
| Insurance                     |   |   | 54,430    |   |   |   | 52,355 |   |
| Depreciation and amortization |   |   | 2,596     |   |   |   | 9,114 |   |
| Foreign exchange              |   |   | (2,471    | )      |   |   | - |   |
|                          |   |   |      |   |   |   |   |   |
|                          |   | $      | 4,369,144 |   |   | $      | 3,970,930 |   |

----

----

|                        |   | 2015   |      |   | 2014   |   |
|-----------------------------|--------|--------|-----------|--------|--------|--------|
|                        |   |        |      |   |        |   |
| Employee related            |   | $      | 1,099,438 |   |   | $      | 1,155,203 |   |
| Professional expenses       |   |   | 666,048   |   |   |   | 337,036 |   |
| Corporate                   |   |   | 416,015   |   |   |   | 333,820 |   |
| Stock based compensation    |   |   | 2,309,944 |   |   |   | 269,254 |   |
| Travel and entertainment    |   |   | 241,819   |   |   |   | 145,860 |   |
| Office related              |   |   | 157,462   |   |   |   | 126,997 |   |
| Insurance                   |   |   | 162,502   |   |   |   | 65,137 |   |
| Acquisition expenses        |   |   | 16,083    |   |   |   | 845,336 |   |
| Depreciation and write-offs |   |   | 53,826    |   |   |   | 43,442 |   |
| Foreign exchange            |   |   | 21,520    |   |   |   | - |   |
|                        |   |   |      |   |   |   |   |   |
|                        |   | $      | 5,144,657 |   |   | $      | 3,322,085 |   |
|                                   |   | 2015   |      |   | 2014   |   |
|----------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                   |   |        |      |   |        |   |
| Trade receivables (note 18(a))         |   | $      | 7,031,030 |   |   | $      | 3,334,462 |   |
| Receivables of the former GAA (note 4) |   |   | -         |   |   |   | 2,363,760 |   |
| Other receivables                      |   |   | 60,519    |   |   |   | 20,429 |   |
|                                   |   |   |      |   |   |   |   |   |
|                                   |   | $      | 7,091,549 |   |   | $      | 5,718,651 |   |
|                                          |   | 2015   |      |   | 2014   |   |
|-----------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                          |   |        |      |   |        |   |
| Trade payables                                |   | $      | 545,606   |   |   | $      | 588,428 |   |
| Payments due to former owners of GAA (note 4) |   |   | 77,017    |   |   |   | 4,586,808 |   |
| Other payables                                |   |   | 2,411,740 |   |   |   | 875,977 |   |
|                                          |   |   |      |   |   |   |   |   |
|                                          |   | $      | 3,034,363 |   |   | $      | 6,051,213 |   |

----

----

|                            |   | Computer equipment and software |   |   | Furniture and equipment |   |    | Leasehold improvements |   |   | Injection mold |   |   | Total  |    |
|---------------------------------|--------|---------------------------------|--------|--------|-------------------------|--------|---------|------------------------|--------|--------|----------------|--------|--------|--------|---------|
|                            |   |                                 |   |   |                         |   |    |                        |   |   |                |   |   |        |    |
| Cost                            |   |                                 |   |   |                         |   |    |                        |   |   |                |   |   |        |    |
|                            |   |                                 |   |   |                         |   |    |                        |   |   |                |   |   |        |    |
| Balance as at January 1, 2014   |   | $                               | 27,241 |   |                    | $      | 44,042  |                   |   | $      | 2,312          |   |   | $      | 126,915 |   |   | $ | 200,510 |   |
|                            |   |                            |   |   |                    |   |    |                   |   |   |           |   |   |   |    |   |   |   |   |   |
| Additions                       |   |                            | 5,623  |   |                    |   | 15,544  |                   |   |   | -              |   |   |   | 73,862  |   |   |   | 95,029 |   |
|                            |   |                            |   |   |                    |   |    |                   |   |   |           |   |   |   |    |   |   |   |   |   |
| Balance as at December 31, 2014 |   |                            | 32,864 |   |                    |   | 59,586  |                   |   |   | 2,312          |   |   |   | 200,777 |   |   |   | 295,539 |   |
|                            |   |                            |   |   |                    |   |    |                   |   |   |           |   |   |   |    |   |   |   |   |   |
| Additions                       |   |                            | 10,448 |   |                    |   | 61,479  |                   |   |   | 2,415          |   |   |   | 110,496 |   |   |   | 184,838 |   |
|                            |   |                            |   |   |                    |   |    |                   |   |   |           |   |   |   |    |   |   |   |   |   |
| Dispositions                    |   |                            | -      |   |                    |   | (4,870  | )                      |   |   | -              |   |   |   | -       |   |   |   | (4,870 | ) |
|                            |   |                            |   |   |                    |   |    |                   |   |   |           |   |   |   |    |   |   |   |   |   |
| Balance as at December 31, 2015 |   | $                               | 43,312 |   |                    | $      | 116,195 |                   |   | $      | 4,727          |   |   | $      | 311,273 |   |   | $ | 475,507 |   |
|                            |   |                            |   |   |                    |   |    |                   |   |   |           |   |   |   |    |   |   |   |   |   |
|                            |   | Computer equipment and software |   |   | Furniture and equipment |   |    | Leasehold improvements |   |   | Injection mold |   |   | Total  |    |
|                            |   |                            |   |   |                    |   |    |                   |   |   |           |   |   |   |    |   |   |   |   |   |
| Accumulated depreciation        |   |                            |   |   |                    |   |    |                   |   |   |           |   |   |   |    |   |   |   |   |   |
|                            |   |                            |   |   |                    |   |    |                   |   |   |           |   |   |   |    |   |   |   |   |   |
| Balance as at January 1, 2014   |   | $                               | 7,892  |   |                    | $      | 15,199  |                   |   | $      | 2,312          |   |   | $      | 120,290 |   |   | $ | 145,693 |   |
|                            |   |                            |   |   |                    |   |    |                   |   |   |           |   |   |   |    |   |   |   |   |   |
| Depreciation expense            |   |                            | 6,845  |   |                    |   | 6,512   |                   |   |   | -              |   |   |   | 6,625   |   |   |   | 19,982 |   |
|                            |   |                            |   |   |                    |   |    |                   |   |   |           |   |   |   |    |   |   |   |   |   |
| Balance as at December 31, 2014 |   |                            | 14,737 |   |                    |   | 21,711  |                   |   |   | 2,312          |   |   |   | 126,915 |   |   |   | 165,675 |   |
|                            |   |                            |   |   |                    |   |    |                   |   |   |           |   |   |   |    |   |   |   |   |   |
| Depreciation expense            |   |                            | 7,425  |   |                    |   | 20,341  |                   |   |   | 282            |   |   |   | -       |   |   |   | 28,048 |   |
|                            |   |                            |   |   |                    |   |    |                   |   |   |           |   |   |   |    |   |   |   |   |   |
| Dispositions                    |   |                            | -      |   |                    |   | (2,922  | )                      |   |   | -              |   |   |   | -       |   |   |   | (2,922 | ) |
|                            |   |                            |   |   |                    |   |    |                   |   |   |           |   |   |   |    |   |   |   |   |   |
| Balance as at December 31, 2015 |   | $                               | 22,162 |   |                    | $      | 39,130  |                   |   | $      | 2,594          |   |   | $      | 126,915 |   |   | $ | 190,801 |   |
|                            |   |                            |   |   |                    |   |    |                   |   |   |           |   |   |   |    |   |   |   |   |   |
|                            |   | Computer equipment and software |   |   | Furniture and equipment |   |    | Leasehold improvements |   |   | Injection mold |   |   | Total  |    |
|                            |   |                            |   |   |                    |   |    |                   |   |   |           |   |   |   |    |   |   |   |   |   |
| Net book value                  |   |                            |   |   |                    |   |    |                   |   |   |           |   |   |   |    |   |   |   |   |   |
|                            |   |                            |   |   |                    |   |    |                   |   |   |           |   |   |   |    |   |   |   |   |   |
| December 31, 2015               |   | $                               | 21,150 |   |                    | $      | 77,065  |                   |   | $      | 2,133          |   |   | $      | 184,358 |   |   | $ | 284,706 |   |
|                            |   |                            |   |   |                    |   |    |                   |   |   |           |   |   |   |    |   |   |   |   |   |
| December 31, 2014               |   | $                               | 18,127 |   |                    | $      | 37,875  |                   |   | $      | -              |   |   | $      | 73,862  |   |   | $ | 129,864 |   |
|                            |   |                            |   |   |                    |   |    |                   |   |   |           |   |   |   |    |   |   |   |   |   |

----

----

|                                             |   | Professional Services Agreements |       |   | Patents |   |    | Total  |   |
|--------------------------------------------------|--------|----------------------------------|------------|--------|---------|--------|---------|--------|--------|
|                                             |   |                                  |       |   |         |   |    |        |   |
| Cost                                             |   |                                  |       |   |         |   |    |        |   |
|                                             |   |                                  |       |   |         |   |    |        |   |
| Balance as at January 1, 2014                    |   | $                                | -          |   |    | $      | 532,598 |   |   | $ | 532,598 |   |
|                                             |   |                             |       |   |    |   |    |   |   |   |   |   |
| Additions through business combinations (note 4) |   |                             | 65,962,032 |   |    |   | -       |   |   |   | 65,962,032 |   |
|                                             |   |                             |       |   |    |   |    |   |   |   |   |   |
| Balance as at December 31, 2014                  |   |                             | 65,962,032 |   |    |   | 532,598 |   |   |   | 66,494,630 |   |
|                                             |   |                             |       |   |    |   |    |   |   |   |   |   |
| Additions through business combinations (note 4) |   |                             | 28,921,628 |   |    |   | -       |   |   |   | 28,921,628 |   |
|                                             |   |                             |       |   |    |   |    |   |   |   |   |   |
| Write-off                                        |   |                             | (466,968   | )      |    |   | -       |   |   |   | (466,968 | ) |
|                                             |   |                             |       |   |    |   |    |   |   |   |   |   |
| Balance as at December 31, 2015                  |   | $                                | 94,416,692 |   |    | $      | 532,598 |   |   | $ | 94,949,290 |   |
|                                             |   |                             |       |   |    |   |    |   |   |   |   |   |
|                                             |   | Professional Services Agreements |       |   | Patents |   |    | Total  |   |
|                                             |   |                             |       |   |    |   |    |   |   |   |   |   |
| Accumulated depreciation                         |   |                             |       |   |    |   |    |   |   |   |   |   |
|                                             |   |                             |       |   |    |   |    |   |   |   |   |   |
| Balance as at January 1, 2014                    |   | $                                | -          |   |    | $      | 399,257 |   |   | $ | 399,257 |   |
|                                             |   |                             |       |   |    |   |    |   |   |   |   |   |
| Amortization expense                             |   |                             | 458,070    |   |    |   | 32,574  |   |   |   | 490,644 |   |
|                                             |   |                             |       |   |    |   |    |   |   |   |   |   |
| Balance as at December 31, 2014                  |   |                             | 458,070    |   |    |   | 431,831 |   |   |   | 889,901 |   |
|                                             |   |                             |       |   |    |   |    |   |   |   |   |   |
| Amortization expense                             |   |                             | 6,795,028  |   |    |   | 34,369  |   |   |   | 6,829,397 |   |
|                                             |   |                             |       |   |    |   |    |   |   |   |   |   |
| Write-off                                        |   |                             | (77,275    | )      |    |   | -       |   |   |   | (77,275 | ) |
|                                             |   |                             |       |   |    |   |    |   |   |   |   |   |
| Balance as at December 31, 2015                  |   | $                                | 7,175,823  |   |    | $      | 466,200 |   |   | $ | 7,642,023 |   |
|                                             |   |                             |       |   |    |   |    |   |   |   |   |   |
|                                             |   | Professional Services Agreements |       |   | Patents |   |    | Total  |   |
|                                             |   |                             |       |   |    |   |    |   |   |   |   |   |
| Net book value                                   |   |                             |       |   |    |   |    |   |   |   |   |   |
|                                             |   |                             |       |   |    |   |    |   |   |   |   |   |
| December 31, 2015                                |   | $                                | 87,240,869 |   |    | $      | 66,398  |   |   | $ | 87,307,267 |   |
|                                             |   |                             |       |   |    |   |    |   |   |   |   |   |
| December 31, 2014                                |   | $                                | 65,503,962 |   |    | $      | 100,767 |   |   | $ | 65,604,729 |   |
|                                             |   |                             |       |   |    |   |    |   |   |   |   |   |

----

----

| December 31, 2015          | CrownNote |   | KnightNote |   | KnightAnnualFee |   | Bloom BurtonFacility |   | Scotia Facility |   | Total   |   |
|----------------------------|-----------|--------|------------|--------|-----------------|--------|----------------------|--------|-----------------|--------|---------|--------|
| Current portion            |      | $      | -          |   |            |   | -                    |   |            |   | -       |   |   |   | - |   |   |   | 3,818,048 |   |   | $ | 3,818,048 |   |
| Non-current portion        |      |   | 14,179,589 |   |            |   | -                    |   |            |   | -       |   |   |   | - |   |   |   | 12,740,829 |   |   |   | 26,920,418 |   |
| Total loans and borrowings |      | $      | 14,179,589 |   |            |   | -                    |   |            |   | -       |   |   |   | - |   |   |   | 16,558,877 |   |   | $ | 30,738,466 |   |
|                       |           |   |
| December 31, 2014          | CrownNote |   | KnightNote |   | KnightAnnualFee |   | Bloom BurtonFacility |   | Scotia Facility |   | Total   |   |
| Current portion            |      | $      | 193,950    |   |            |   | 5,666,667            |   |            |   | 752,683 |   |   |   | - |   |   |   | - |   |   | $ | 6,613,300 |   |
| Non-current portion        |      |   | 16,224,216 |   |            |   | 21,338,826           |   |            |   | -       |   |   |   | 1,946,389 |   |   |   | - |   |   |   | 39,509,431 |   |
| Total loans and borrowings |      | $      | 16,418,166 |   |            |   | 27,005,493           |   |            |   | 752,683 |   |   |   | 1,946,389 |   |   |   | - |   |   | $ | 46,122,731 |   |
| Financial Covenant          | Required Ratio |
|-----------------------------|----------------|
| Senior debt to EBITDA ratio | 2.25:1.00      |
| Total funded debt ratio     | 3.00:1.00      |
| Fixed charge coverage ratio | 1.30:1.00      |

----

----

----

----

|                          |   | Minimum Principal |       |
|-------------------------------|--------|-------------------|------------|
|  At December 31, 2015    |   |                   |       |
|  Not later than one year |   | $                 | 4,000,000  |   |
| Between one and five years    |   | $                 | 29,256,250 |   |
|                          |   | $                 | 33,256,250 |   |

----

----

| Subsidiary                                           | Jurisdiction of Incorporation |
|------------------------------------------------------|-------------------------------|
| CRH Medical Corporation                              | British Columbia, Canada      |
| CRH Medical Corporation                              | Delaware, United States       |
| CRH Anesthesia Management LLC                        | Delaware, United States       |
| Gastroenterology Anesthesia Associates LLC           | Georgia, United States        |
| Macon Gastroenterology Anesthesia Associates LLC     | Georgia, United States        |
| NC GAA, PC                                           | North Carolina, United States |
| CRH Anesthesia of Gainesville LLC                    | Florida, United States        |
| CRH Anesthesia of Sarasota LLC                       | Florida, United States        |
| CRH Anesthesia of Cape Coral LLC                     | Florida, United States        |
| CRH Anesthesia of Knoxville LLC                      | Tennessee, United States      |
| Knoxville Gastroenterology Anesthesia Associates LLC | Tennessee, United States      |

|  | (a) | The Company holds a 65% controlling interest in Macon Gastroenterology Anesthesia Associates LLC ("MGAA").  As a result of the operating agreement, the Company controls MGAA and 100% of the financial results of this subsidiary are included in the Company's consolidated financial statements. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                     |   | 2015   |      |
|------------------------------------------|--------|--------|-----------|
| Cash and cash equivalents                |   | $      | 263,004   |   |
| Trade and other receivables              |   |   | 193,159   |   |
| Intangible assets                        |   |   | 7,071,556 |   |
|                                     |   |   | 7,527,719 |   |
|                                     |   |   |      |   |
| Accounts payable and accrued liabilities |   |   | 83,314    |   |
| Loans                                    |   |   | 285,714   |   |
|                                     |   |   | 369,028   |   |
|                                     |   |   |      |   |
| Member contributions                     |   |   | 7,184,615 |   |
| Retained deficit                         |   |   | (25,924   | ) |
|                                     |   |   | 7,158,691 |   |
|                                     |   |   |      |   |
| Total liabilities and equity             |   | $      | 7,527,719 |   |
|                        |   | 2015   |    |
|-----------------------------|--------|--------|---------|
| Anesthesia revenue          |   | $      | 205,488 |   |
| Anesthesia services expense |   |   | 231,412 |   |
| Net loss before tax         |   | $      | (25,924 | ) |

----

----

|  | (b) | The Company holds a 51% controlling interest in Knoxville Gastroenterology Anesthesia Associates LLC ("KGAA").  As a result, 100% of the financial results of this subsidiary are included in the Company's consolidated financial results. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                     |   | 2015   |       |
|------------------------------------------|--------|--------|------------|
| Cash and cash equivalents                |   | $      | 439,082    |   |
| Trade and other receivables              |   |   | 1,191,100  |   |
| Prepaids                                 |   |   | 11,006     |   |
| Intangible assets                        |   |   | 12,732,686 |   |
|                                     |   |   | 14,373,874 |   |
|                                     |   |   |       |   |
| Accounts payable and accrued liabilities |   |   | 273,992    |   |
| Loans                                    |   |   | 166,994    |   |
|                                     |   |   | 440,986    |   |
|                                     |   |   |       |   |
| Member contributions                     |   |   | 13,369,320 |   |
| Retained earnings                        |   |   | 563,568    |   |
|                                     |   |   | 13,932,888 |   |
|                                     |   |   |       |   |
| Total liabilities and equity             |   | $      | 14,373,874 |   |
|                        |   | 2015   |      |
|-----------------------------|--------|--------|-----------|
| Anesthesia revenue          |   | $      | 2,135,066 |   |
| Anesthesia services expense |   |   | 1,571,498 |   |
| Net income before tax       |   | $      | 563,568   |   |

----

----

|                           |   | Number of options |       |   | Weighted average exercise price |   |
|--------------------------------|--------|-------------------|------------|--------|---------------------------------|--------|
|                           |   |                   |       |   | CAD                             |   |   | USD |   |
|                           |   |                   |       |   |                                 |   |   |  |   |
| Outstanding, January 1, 2014   |   |              | 4,595,000  |   |                            | $      | 0.80 |   |   | $ | 0.75 |   |
|                           |   |              |       |   |                            |   |   |   |   |   |   |   |
| Issued                         |   |              | 1,150,000  |   |                            |   | 0.70 |   |   |   | 0.60 |   |
| Exercised                      |   |              | (167,188   | )      |                            |   | 0.96 |   |   |   | 0.83 |   |
| Forfeited                      |   |              | (139,062   | )      |                            |   | 0.75 |   |   |   | 0.65 |   |
| Expired                        |   |              | (1,675,000 | )      |                            |   | 0.95 |   |   |   | 0.82 |   |
|                           |   |              |       |   |                            |   |   |   |   |   |   |   |
| Outstanding, December 31, 2014 |   |              | 3,763,750  |   |                            |   | 0.70 |   |   |   | 0.60 |   |
|                           |   |              |       |   |                            |   |   |   |   |   |   |   |
| Issued                         |   |              | -          |   |                            |   | - |   |   |   | - |   |
| Exercised                      |   |              | (758,189   | )      |                            |   | 1.09 |   |   |   | 0.78 |   |
| Forfeited                      |   |              | (31,250    | )      |                            |   | 0.47 |   |   |   | 0.34 |   |
| Expired                        |   |              | -          |   |                            |   | - |   |   |   | - |   |
|                           |   |              |       |   |                            |   |   |   |   |   |   |   |
| Outstanding, December 31, 2015 |   |              | 2,974,311  |   |                            | $      | 0.60 |   |   | $ | 0.43 |   |
| Exercise price    | Options outstanding                                 | Options exercisable                    |
|-------------------|-----------------------------------------------------|----------------------------------------|
| Number of options | Weighted average remaining contractual life (years) | Weighted average exercise price ($CAD) | Weighted average exercise price ($USD) | Number of options | Weighted average exercise price ($CAD) | Weighted average exercise price ($USD) |
| $CAD              | $USD                                                |
|              |                                                |                                   |   |   |   |   |   |   |
| 0.28 – 0.58 | 0.18 – 0.42                                   | 1,502,124                              | 1.11 | 0.51 | 0.37 | 1,430,874 | 0.52 | 0.38 |
| 0.59 – 0.85 | 0.43 – 0.61                                   | 1,432,187                              | 8.04 | 0.68 | 0.49 | 640,312 | 0.68 | 0.49 |
| 0.86 – 1.20 | 0.62 – 0.86                                   | 40,000                                 | 0.28 | 1.13 | 0.81 | 40,000 | 1.13 | 0.81 |
|              |                                                |                                   |   |   |   |   |   |   |
|              |                                                | 2,974,311                              | 4.44 | 0.60 | 0.43 | 2,111,186 | 0.58 | 0.42 |
| Exercise price    | Options outstanding                                 | Options exercisable                    |
|-------------------|-----------------------------------------------------|----------------------------------------|
| Number of options | Weighted average remaining contractual life (years) | Weighted average exercise price ($CAD) | Weighted average exercise price ($USD) | Number of options | Weighted average exercise price ($CAD) | Weighted average exercise price ($USD) |
| $CAD              | $USD                                                |
|              |                                                |                                   |   |   |   |   |   |   |
| 0.28 – 0.58 | 0.24 – 0.50                                   | 1,780,000                              | 2.11 | 0.51 | 0.44 | 1,257,500 | 0.52 | 0.45 |
| 0.59 – 0.85 | 0.51 – 0.73                                   | 1,458,750                              | 9.04 | 0.68 | 0.58 | 288,125 | 0.67 | 0.58 |
| 0.86 – 1.90 | 0.74 – 1.64                                   | 525,000                                | 0.72 | 1.39 | 1.19 | 515,626 | 1.39 | 1.20 |
|              |                                                |                                   |   |   |   |   |   |   |
|              |                                                | 3,763,750                              | 4.60 | 0.70 | 0.60 | 2,061,251 | 0.76 | 0.66 |

----

----

|                     | 2014       |
|--------------------------|------------|
| Expected life of options | 6.25 years |
| Risk-free interest rate  | 1.76%      |
| Dividend yield           | 0%         |
| Volatility               | 63%        |
| Pre-vest forfeiture rate | 4.08%      |
|                     |       |

----

----

|                           | Time based share units | Performance based share units |
|--------------------------------|------------------------|-------------------------------|
|                           |                   |                          |
| Outstanding, January 1, 2015   | -                      | -                             |
|                           |                   |                          |
| Issued                         | 509,000                | 2,000,000                     |
| Exercised                      | -                      | (1,000,000)                   |
| Forfeited                      | -                      | -                             |
| Expired                        | -                      | -                             |
|                           |                   |                          |
| Outstanding, December 31, 2015 | 509,000                | 1,000,000                     |

|                         | 2015     |
|------------------------------|----------|
| Risk-free interest rate      | 0.61%    |
| Expected volatility          | 60.50%   |
| Pre-vest forfeiture rate     | 0%       |
| Weighted average share price | CAD$2.45 |

----

----

|                                       |   | 2015         |      |   | 2014                                                 |   |
|--------------------------------------------|--------|--------------|-----------|--------|------------------------------------------------------|--------|
|                                       |   | Net earnings |      |   | Weighted average number of common shares outstanding |   |   | Per share amount |   |   | Net earnings |   |   | Weighted average number of common shares outstanding |   |   | Per share amount |   |
|                                       |   |              |      |   |                                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Net earnings attributable to shareholders: |   |              |      |   |                                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |
|                                       |   |              |      |   |                                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Earnings per common share:                 |   |              |      |   |                                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Basic                                      |   | $            | 3,076,191 |   |                                                 |   | 67,870,529 |   |   | $ | 0.045 |   |   | $ | 1,498,153 |   |   |   | 48,876,822 |   |   | $ | 0.031 |   |
| Share options                              |   |         |      |   |                                                 |   | 2,701,476 |   |   |   |   |   |   |   |   |   |   |   | 958,554 |   |   |   |   |   |
| Share units                                |   |         |      |   |                                                 |   | - |   |   |   |   |   |   |   |   |   |   |   | - |   |   |   |   |   |
| Broker warrants                            |   |         |      |   |                                                 |   | 200,336 |   |   |   |   |   |   |   |   |   |   |   | - |   |   |   |   |   |
|                                       |   |         |      |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                    |   | $            | 3,076,191 |   |                                                 |   | 70,772,341 |   |   | $ | 0.043 |   |   | $ | 1,498,153 |   |   |   | 49,835,377 |   |   | $ | 0.030 |   |

----

----

|                                                         |   | 2015   |       |   | 2014   |   |
|--------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                         |   |        |       |   |        |   |
| Current tax expense                                          |   | $      | 1,136,028  |   |   | $      | 193,612 |   |
| Deferred tax expense (recovery):                             |   |   |       |   |   |   |   |   |
| Recognition of previously unrecognized temporary differences |   |   | (2,600,786 | )      |   |   | (548,082 | ) |
| Origination and reversal of temporary differences            |   |   | (1,401,096 | )      |   |   | 262,950 |   |
| Change in enacted tax rates and other                        |   |   | (47,116    | )      |   |   | (52,199 | ) |
|                                                         |   |   |       |   |   |   |   |   |
| Total tax recovery                                           |   | $      | (2,912,970 | )      |   | $      | (143,719 | ) |
|                                                         |   | 2015   |       |   | 2014   |   |
|--------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                         |   |        |       |   |        |   |
| Tax expense at statutory income tax rates                    |   | $      | 90,183     |   |   | $      | 352,153 |   |
| Recognition of previously unrecognized temporary differences |   |   | (2,600,786 | )      |   |   | (548,082 | ) |
| Permanent differences                                        |   |   | 123,386    |   |   |   | 82,694 |   |
| Foreign income taxed at different rates                      |   |   | (469,839   | )      |   |   | (36,172 | ) |
| Other                                                        |   |   | (55,914    | )      |   |   | 5,688 |   |
|                                                         |   |   |       |   |   |   |   |   |
| Tax recovery                                                 |   | $      | (2,912,970 | )      |   | $      | (143,719 | ) |
|                        |   | 2015   |       |   | 2014   |   |
|-----------------------------|--------|--------|------------|--------|--------|--------|
|                        |   |        |       |   |        |   |
| Deferred tax assets:        |   |        |       |   |        |   |
| Non-capital losses          |   | $      | 724,802    |   |   | $      | 489,111 |   |
| Property and equipment      |   |   | -          |   |   |   | 12,186 |   |
| Finance related costs       |   |   | 350,543    |   |   |   | 68,182 |   |
| Reserves                    |   |   | 941,352    |   |   |   | 131,885 |   |
| Share transaction costs     |   |   | 357,434    |   |   |   | - |   |
| Stock-based compensation    |   |   | 128,837    |   |   |   |   |   |
| Earn-out obligation         |   |   | 4,862,894  |   |   |   | 2,901,974 |   |
|                        |   |   |       |   |   |   |   |   |
| Deferred tax liabilities:   |   |   |       |   |   |   |   |   |
| Intangible assets           |   |   | (1,466,546 | )      |   |   | (2,522,387 | ) |
| Property and equipment      |   |   | (1,880     | )      |   |   | - |   |
| Unrealized foreign exchange |   |   | (397,743   | )      |   |   | (50,768 | ) |
|                        |   |   |       |   |   |   |   |   |
| Net deferred tax asset      |   | $      | 5,499,693  |   |   | $      | 1,030,183 |   |

----

----

|                              |   | 2015   |   |   | 2014   |   |
|-----------------------------------|--------|--------|--------|--------|--------|--------|
|                              |   |        |   |   |        |   |
| Deferred income tax assets:       |   |        |   |   |        |   |
| Net operating losses              |   | $      | -      |   |   | $      | 7,430,818 |   |
|                              |   |   |   |   |   |   |   |   |
| Deferred tax asset not recognized |   | $      | -      |   |   | $      | 7,430,818 |   |

|                                                                                          |   | 2015 |       |   | 2014   |   |
|-----------------------------------------------------------------------------------------------|--------|------|------------|--------|--------|--------|
|  Shareholders' equity attributable to shareholders, excluding other comprehensive income |   | $    | 47,791,917 |   |   | $      | 18,854,134 |   |

----

----

|                                                                                      |   | 2015   |       |   | 2014   |   |
|-------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Finance income:                                                                           |   |        |       |   |        |   |
| Foreign exchange gain                                                                     |   | $      | (2,737,964 | )      |   | $      | (410,208 | ) |
| Total finance income                                                                      |   | $      | (2,737,964 | )      |   | $      | (410,208 | ) |
|                                                                                      |   |   |       |   |   |   |   |   |
| Finance expense:                                                                          |   |   |       |   |   |   |   |   |
| Interest and accretion expense on borrowings                                              |   | $      | 6,251,617  |   |   | $      | 641,991 |   |
| Accretion expense on earn-out obligation                                                  |   |   | 1,272,494  |   |   |   | 101,928 |   |
| Amortization of deferred financing fees                                                   |   |   | 749,378    |   |   |   | 67,432 |   |
| Net change in fair value of financial liabilities at fair value through earnings          |   |   | 5,731,294  |   |   |   | - |   |
| Extinguishment of notes payable                                                           |   |   | 1,817,509  |   |   |   |   |   |
| Financing fees related to financial instruments classified as fair value through earnings |   |   | -          |   |   |   | 1,222,316 |   |
| Total finance expense                                                                     |   | $      | 15,822,292 |   |   | $      | 2,033,667 |   |
|  Net finance expense                                                                 |   | $      | 13,084,328 |   |   | $      | 1,623,459 |   |

----

----

|  | · | Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; |
|--|--------|---------------------------------------------------------------------------------------------|

|  | · | Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Level 3 - inputs for the asset or liability that are not based on observable market data (unobservable inputs). |
|--|--------|-----------------------------------------------------------------------------------------------------------------|

| December 31, 2015     |   |                |       |   | Fair Value |   |
|-----------------------|--------|----------------|------------|--------|------------|--------|
|                  |   | Carrying Value |       |   | Level 1    |   |   | Level 2 |   |   | Level 3 |   |
| Financial liabilities |   |                |       |   |            |   |   |  |   |   |  |   |
| Notes payable         |   | $              | -          |   |       |   | - |   |   |   | - |   |   | $ | - |   |
| Earn-out obligation   |   | $              | 12,468,958 |   |       |   | - |   |   |   | - |   |   | $ | 12,468,958 |   |
| December 31, 2014     |   |                |       |   | Fair Value |   |
|-----------------------|--------|----------------|------------|--------|------------|--------|
|                  |   | Carrying Value |       |   | Level 1    |   |   | Level 2 |   |   | Level 3 |   |
| Financial liabilities |   |                |       |   |            |   |   |  |   |   |  |   |
| Notes payable         |   | $              | 27,005,493 |   |       |   | - |   |   |   | - |   |   | $ | 27,005,493 |   |
| Earn-out obligation   |   | $              | 7,440,960  |   |       |   | - |   |   |   | - |   |   | $ | 7,440,960 |   |

----

----

----

----

|                                                         |   | Notes Payable |        |   | Earn-out Obligation |   |       | Total  |   |
|--------------------------------------------------------------|--------|---------------|-------------|--------|---------------------|--------|------------|--------|--------|
| Balance as at January 1, 2015                                |   | $             | 27,005,493  |   |                | $      | 7,440,960  |   |   | $ | 34,446,453 |   |
| Repayment of principal and interest and extinguishment costs |   |          | (33,864,660 | )      |                |   | -          |   |   |   | (33,864,660 | ) |
| Recorded in finance expense:                                 |   |          |        |   |                |   |       |   |   |   |   |   |
| Accretion expense                                            |   |          | 3,084,353   |   |                |   | 1,272,494  |   |   |   | 4,356,847 |   |
| Fair value adjustment                                        |   |          | 1,975,790   |   |                |   | 3,755,504  |   |   |   | 5,731,294 |   |
| Loss on extinguishment                                       |   |          | 1,799,024   |   |                |   | -          |   |   |   | 1,799,024 |   |
|                                                         |   |          |        |   |                |   |       |   |   |   |   |   |
|  Balance as at December 31, 2015                        |   | $             | -           |   |                | $      | 12,468,958 |   |   | $ | 12,468,958 |   |

----

----

|                                        |   | 2015   |       |   | 2014   |   |
|---------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                        |   |        |       |   |        |   |
| Total trade receivables                     |   | $      | 9,375,714  |   |   | $      | 3,697,600 |   |
| Less:  allowance for doubtful accounts |   |   | (2,344,684 | )      |   |   | (363,138 | ) |
|                                        |   |   |       |   |   |   |   |   |
| Total trade receivables, net                |   | $      | 7,031,030  |   |   | $      | 3,334,462 |   |
|                                        |   |   |       |   |   |   |   |   |
| Of which:                                   |   |   |       |   |   |   |   |   |
| Current                                     |   | $      | 4,708,391  |   |   | $      | 3,469,199 |   |
| Less than 60 days                           |   |   | 1,084,600  |   |   |   | 159,180 |   |
| Less than 90 days                           |   |   | 766,143    |   |   |   | 44,233 |   |
| 90 days or greater                          |   |   | 2,816,580  |   |   |   | 24,988 |   |
|                                        |   |   |       |   |   |   |   |   |
| Total trade receivables                     |   | $      | 9,375,714  |   |   | $      | 3,697,600 |   |
|                                   |   | 2015   |       |   | 2014   |   |
|----------------------------------------|--------|--------|------------|--------|--------|--------|
|                                   |   |        |       |   |        |   |
| Cash and cash equivalents              |   | $      | 3,572,344  |   |   | $      | 4,133,663 |   |
| Trade receivables                      |   |   | 7,031,030  |   |   |   | 3,334,462 |   |
|                                   |   |   |       |   |   |   |   |   |
|                                   |   | $      | 10,603,374 |   |   | $      | 7,468,125 |   |
|                                   |   |   |       |   |   |   |   |   |
| Continuity of allowance for bad debts: |   |   |       |   |   |   |   |   |
| Beginning balance                      |   | $      | 363,138    |   |   | $      | 26,606 |   |
| Write-offs                             |   |   | (14,429    | )      |   |   | (14,048 | ) |
| Provision                              |   |   | 1,995,975  |   |   |   | 350,580 |   |
|                                   |   |   |       |   |   |   |   |   |
| Total allowance for bad debts          |   | $      | 2,344,684  |   |   | $      | 363,138 |   |
|  At December 31, 2015          |   |        |       |   | Maturity           |   |
|-------------------------------------|--------|--------|------------|--------|--------------------|--------|
|                                |   | TOTAL  |       |   | Less than one year |   |   | One to three years |   |   | Four to five years |   |   | After five years |   |
| Trade and other payables            |   | $      | 3,034,363  |   |               | $      | 3,034,363 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Employee benefits                   |   |   | 142,576    |   |               |   | 142,576 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Notes payable and bank indebtedness |   |   | 30,738,466 |   |               |   | 3,818,048 |   |   |   | 26,920,418 |   |   |   | - |   |   |   | - |   |
| Earn-out obligation                 |   |   | 12,468,958 |   |               |   | - |   |   |   | 12,468,958 |   |   |   |   |   |   |   |   |   |
| Loans                               |   |   | 266,994    |   |               |   | 266,994 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                |   | $      | 46,651,357 |   |               | $      | 7,261,981 |   |   | $ | 39,389,376 |   |   | $ | - |   |   | $ | - |   |

----

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|  At December 31, 2014 |   |        |       |   | Maturity           |   |
|----------------------------|--------|--------|------------|--------|--------------------|--------|
|                       |   | TOTAL  |       |   | Less than one year |   |   | One to three years |   |   | Four to five years |   |   | After five years |   |
| Trade and other payables   |   | $      | 6,051,213  |   |               | $      | 6,051,213 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Employee benefits          |   |   | 105,930    |   |               |   | 105,930 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Short term advances        |   |   | 262,482    |   |               |   | 262,482 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Notes payable              |   |   | 46,122,731 |   |               |   | 6,613,300 |   |   |   | 21,338,826 |   |   |   | 18,170,605 |   |   |   | - |   |
| Earn-out obligation        |   |   | 7,440,960  |   |               |   | - |   |   |   | - |   |   |   | 7,440,960 |   |   |   |   |   |
|                       |   | $      | 59,983,316 |   |               | $      | 13,032,925 |   |   | $ | 21,338,826 |   |   | $ | 25,611,565 |   |   | $ | - |   |

----

----

| Expressed in U.S. dollar equivalent                      |   | 2015   |       |   | 2014   |   |
|----------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                     |   |        |       |   |        |   |
| Cash and cash equivalents                                |   | $      | 71,378     |   |   | $      | 67,521 |   |
| Trade and other receivables                              |   |   | 66,094     |   |   |   | 32,452 |   |
| Trade and other payables and other financial liabilities |   |   | 501,888    |   |   |   | 771,893 |   |
| Notes payable                                            |   |   | 14,179,589 |   |   |   | 16,418,166 |   |
|                                                     |   |   |       |   |   |   |   |   |

|  | (ii) | Interest rate risk: |
|--|------|---------------------|

|               |   |        |    |
|--------------------|--------|--------|---------|
| Less than one year |   | $      | 119,043 |   |
| One to three years |   |   | 331,452 |   |
| Four to five years |   |   | 36,828  |   |
| Thereafter         |   |   | -       |   |
| Total              |   | $      | 487,323 |   |
|               |   |   |    |   |

|  | (b) | The Company is a party to a variety of agreements in the ordinary course of business under which it may be obligated to indemnify third parties with respect to certain matters.  These obligations include, but are not limited to contracts entered into with physicians where the Company agrees, under certain circumstances, to indemnify a third party, against losses arising from matters including but not limited to medical malpractice and product liability.  The impact of any such future claims, if made, on future financial results is not subject to reasonable estimation because considerable uncertainty exists as to final outcome of these potential claims. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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|  | (a) | Related party transactions: |
|--|-----|-----------------------------|

|  | (b) | Compensation of key management personnel: |
|--|-----|-------------------------------------------|

|                                         |   | 2015   |      |   | 2014   |   |
|----------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                         |   |        |      |   |        |   |
| Salaries, directors' fees and other benefits |   | $      | 988,647   |   |   | $      | 1,221,387 |   |
| Share-based payments                         |   |   | 2,295,237 |   |   |   | 289,293 |   |
|                                         |   |   |      |   |   |   |   |   |
|                                         |   | $      | 3,283,884 |   |   | $      | 1,510,680 |   |

|  | (i) | Share-based payments represent the amount expensed during the year for options granted. |
|--|-----|-----------------------------------------------------------------------------------------|

|  | (ii) | There were no post-employment, termination or other long-term benefits paid during the years ending December 31, 2015 and 2014. |
|--|------|---------------------------------------------------------------------------------------------------------------------------------|

|             |   | 2015   |       |   | 2014   |   |
|------------------|--------|--------|------------|--------|--------|--------|
| Revenue:         |   |        |       |   |        |   |
| Canada and other |   | $      | 177,375    |   |   | $      | 164,038 |   |
| United States    |   |   | 45,871,105 |   |   |   | 11,820,132 |   |
| Total            |   | $      | 46,048,480 |   |   | $      | 11,984,170 |   |

----

----

|                    |   | 2015   |       |   | 2014   |   |
|-------------------------|--------|--------|------------|--------|--------|--------|
| Property and equipment: |   |        |       |   |        |   |
| Canada                  |   | $      | 269,350    |   |   | $      | 129,864 |   |
| United States           |   |   | 15,356     |   |   |   | - |   |
| Total                   |   | $      | 284,706    |   |   | $      | 129,864 |   |
| Intangible assets:      |   |   |       |   |   |   |   |   |
| Canada                  |   | $      | 66,397     |   |   | $      | 100,767 |   |
| United States           |   |   | 87,240,870 |   |   |   | 65,503,962 |   |
| Total                   |   | $      | 87,307,267 |   |   | $      | 65,604,729 |   |
| Other assets:           |   |   |       |   |   |   |   |   |
| Canada                  |   | $      | -          |   |   | $      | 1,550,940 |   |
| United States           |   |   | -          |   |   |   | - |   |
| Total                   |   | $      | -          |   |   | $      | 1,550,940 |   |
|                    |   | 2015                |       |
|-------------------------|--------|---------------------|------------|
|                    |   | Anesthesia services |       |   | Product sales |   |   | Other |   |   | Total |   |
| Revenue                 |   | $                   | 36,496,035 |   |   | $ | 9,552,445 |   |   | $ | - |   |   | $ | 46,048,480 |   |
| Operating costs         |   |                | 23,103,493 |   |   |   | 4,369,144 |   |   |   | 5,144,657 |   |   |   | 32,617,294 |   |
| Operating income (loss) |   | $                   | 13,392,542 |   |   | $ | 5,183,301 |   |   | $ | (5,144,657 | ) |   | $ | 13,431,186 |   |
|                    |   | 2014                |      |
|-------------------------|--------|---------------------|-----------|
|                    |   | Anesthesia services |      |   | Product sales |   |   | Other |   |   | Total |   |
| Revenue                 |   | $                   | 3,386,073 |   |   | $ | 8,598,097 |   |   | $ | - |   |   | $ | 11,984,170 |   |
| Operating costs         |   |                | 1,713,262 |   |   |   | 3,970,930 |   |   |   | 3,322,085 |   |   |   | 9,006,277 |   |
| Operating income (loss) |   | $                   | 1,672,811 |   |   | $ | 4,627,167 |   |   | $ | (3,322,085 | ) |   | $ | 2,977,893 |   |

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