July 2014

Dear shareholders and prospective shareholders,

On July 30, we announced our second quarter, 2014 results.

Revenue for the three months ended June 30, 2014, was $2.05 million compared to $1.95 million for the same period in 2013, representing an increase of 5 percent.

Net income for the second quarter of 2014 before taxes was $501,247, which was essentially flat compared to net income before taxes of $501,846 for the three months ended June 30, 2013.

Our balance sheet continues to strengthen. As of June 30, 2014, we had $7.9 million cash and cash equivalents, an increase of 21 percent, compared to $6.6 million as of December 31, 2013.

We believe the success of our business is due to three factors:

1. the combination of treatment effectiveness with the easy-to-use, disposable nature of the CRH O’Regan System;
2. our comprehensive support program for trained physicians and their staff; and
3. our direct-to-physician sales approach

We also believe that the continued profitable growth of our business is an indication of the size of the market opportunity, with approximately one in two Americans being afflicted by hemorrhoids by age 50. In this respect, the CRH O’Regan System offers a meaningful financial opportunity for gastroenterologists who are diagnosing hemorrhoids on a regular basis.

Markers to Assess Our Commercial Progress

In assessing our commercial progress, we closely track the number of physicians trained on the O’Regan System. Historically, after training, a high percentage of them purchase and use the technology. As of June 30, 2014 the Company had trained 1,765 physicians, representing 643 clinical practices.

We also monitor the number of procedures performed using the O’Regan System. By the end of the second quarter, medical practitioners had done approximately 525,000 procedures using the O’Regan System. By the end of the first quarter of 2014, approximately 490,000 procedures had been performed.

In summary, we have an outstanding product that is gaining market share, resulting in the continued delivery of financial growth.

We’re putting money in the bank every quarter and have a strong base to drive further growth.


We look forward to sharing the August edition of the CRH Investor Bulletin with you, and as always, we appreciate your interest and support.

Adam Peeler
Media and Investor Relations
TMX Equicom
416.815.0700 x 225

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