MACH7 TECHNOLOGIES LIMITED — Interim / Quarterly Report 2012

Feb 28, 2012

Safety Medical Products Limited

Appendix 4D

Name of entity ABN ASX listing code	Safety Medical Products Limited 26 007 817 192 SFP Revenue / Profit Movement Change(%)	Safety Medical Products Limited 26 007 817 192 SFP Revenue / Profit Movement Change(%)	31 Dec 11 $ 31 Dec 10 $
	Revenue / Profit
Revenue from ordinary activities Profit from ordinary activities after tax attributable to members Net profit for the period attributable to members		 (100.0)	- 15,766 (169,973) 1,533,124 (169,973) 1,533,124 Amount Per Security Franked Amount per Security
		 (111.1)
		 (111.1) Revenue / Profit
Dividends Paid in respect of prior year: Interim Dividend Final Dividend Dividends declared in respect of current year: Interim Dividend () _ No interim dividend was declared_ Net Tangible Assets			0.0c 0.0c 0.0c 0.0c 0.0c 0.0c 31 Dec 11 Cents 31 Dec 10 Cents
Net tangible assets per share: (2011: 396,455,466 shares) (2010: 323,250,000 shares)			0.004 0.005

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SAFETY MEDICAL PRODUCTS LIMITED

ABN 26 007 817 192

HALF YEAR FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2011

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Safety Medical Products Limited

Contents	Page
Directors’ report	3
Statement of comprehensive income	6
Statement of changes in equity	7
Statement of financial position	8
Statement of cash flow	9
Notes to the financial statements	10
Directors’ declaration	12
Independent auditor’s review report	13
Corporate directory	15

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Safety Medical Products Limited Directors’ Report For the six months ended 31 December 2011

The directors present their report together with the financial report for the six months ended 31 December 2011 and the review report thereon.

Safety Medical Products Limited (the "Company") is a company domiciled in Australia. The financial statements of the Company for the financial year ended 31 December 2011 relates to Safety Medical Products Limited as a single entity following the disposal of all subsidiaries during the previous financial year. The Company is involved in the research and development of medical syringe technology as well as mineral exploration.

Officeholders

The directors of the Company at any time during or since the end of the interim period are:

Name Period of directorship Non-executive Peter Christie (Chairman) Director, appointed 6 October 2010. Simon Lill Director, appointed 6 October 2010. Stephen Hewitt-Dutton Director, appointed 6 October 2010.

Review of operations

Overview

The Statement of Comprehensive Income shows a net loss attributable to members of $169,973 compared with $1,533,125 profit for the previous corresponding period. The prior period result includes gains on settlement of creditors under the Deed of Company Arrangement (DOCA) of $812,218 and a gain on deconsolidation of subsidiary companies Pureste Pty Ltd and Baratex Pty Ltd of $1,014,554.

Review of principal business activities

The Company continues to own assets associated with the SecureTouch syringe, such as the intellectual property as protected through various patents, in regions and countries including Europe, the United States of America, Australian and New Zealand.

Market demand for the safety syringe is forecast to continue to grow, and hence the Company continues to consider means of establishing a viable route to market for the Company’s Secure Touch syringe and associated products. However given continued uncertainty in the global financial markets the Company has not yet been able to establish a clear and commercial path to production and marketing.

In March 2011, the Company negotiated and finalised an option agreement to acquire key tenements in the Three Rivers Area of north Western Australia from Brutus Constructions Pty Ltd. The tenement EL 52/2605 is granted and tenement EL 52/2656 is under application and pending grant. During the period, an extension of option to acquire these tenements was granted.

Events subsequent to reporting date

There has been no event subsequent to reporting date.

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Safety Medical Products Limited Directors’ Report For the six months ended 31 December 2011

Lead auditor’s independence declaration

The lead auditor’s independence declaration is set out on page 5 and forms part of the directors’ report for the six months ended 31 December 2011.

Dated at Perth this 29th day of February 2012

Signed in accordance with a resolution of the directors:

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Simon Lill Director

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To the Board of Directors

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This declaration is made in connection with our review of the financial report of Safety Medical Products Limited for the half-year ended 31 December 2011 and in accordance with the provisions of the Corporations Act 2001 .

We declare that, to the best of our knowledge and belief, there have been:

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• no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review;

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• no contraventions of the Code of Professional Conduct of the Institute of Chartered Accountants in Australia in relation to the review.

Yours faithfully

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BENTLEYS Chartered Accountants

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RICHARD JOUGHIN CA
Director
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DATED at PERTH this 29[th] day of February 2012

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Safety Medical Products Limited Statement of Comprehensive Income For the half year ended 31 December 2011

Safety Medical Products Limited Statement of Comprehensive Income For the half year ended 31 December 2011
Note	31 Dec 2011 $ 31 Dec 2010 $
Revenue Cost of sales Gross profit Other income Business development, marketing and intellectual property expenses Accounting and audit fees Administrators’ fees Directors’ and Company Secretarial fees Legal fees Consultancy and Corporate Advisors fees Administrative expenses Results from operating activities Financial income Financial expense Impairment Loss (Loss) / Profit before tax Income tax expense (Loss) / Profit for the half year from continued operations Profit from discontinued operations (Loss) / Profit for the half-year Other comprehensive income Total comprehensive income for the half year Earnings per Share: From continuing and discontinued operations Basic earnings per share (cents) From continuing operations Basic earnings per share (cents) From discontinued operations Basic earnings per share (cents)	- 15,766 - (5,755)
	- 10,011 - 806,216 (3,751) (2,683) (28,326) (40,352) - (58,158) (80,000) - (800) (53,630) (75,718) - (30,006) (10,470)
	(218,601) 650,934 48,938 1,279 (310) (1,501) - (132,142)
	(169,973) 518,570 - -
	(169,973) 518,570 - 1,014,554
	(169,973) 1,533,124
	- -
	(169,973) 1,533,124
	(0.04) 2.79 (0.04) 0.94 - 1.85

The statement of comprehensive income should be read in conjunction with the attached notes to the financial statements.

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Safety Medical Products Limited Statement of Changes in Equity For the half year ended 31 December 2011

2011 **Note **	Issued Capital Accumulated losses Equity compensation reserve Minority Interest Total equity $ $ $ $ $
Opening balance at 1 July 2011 (Loss) / Profit for the half-year Other comprehensive income Total comprehensive income for the period Transactions with owners in their capacity as owners, and other transfers Shares Issued Transaction costs Closing balance at 31 December 2011 2010 **Note **	2,779,628 (948,628) - - 1,831,000 - (169,973) - - (169,973) - - - - -
	- (169,973) - - (169,973) - - - - - - - - - - - - -
	2,779,628 (1,118,601) - - 1,661,027
	Issued Capital Accumulated losses Equity compensation reserve Minority Interest Total equity $ $ $ $ $
Opening balance at 1 July 2010 (Loss) / Profit for the half-year Other comprehensive income Total comprehensive income for the period Transactions with owners in their capacity as owners, and other transfers Conversion of convertible notes under DOCA Reduction of capital as approved at the general meeting Shares issued under the Proponent Issue Shares issued under the Prospectus Transaction costs Changes owing to deconsolidation of subsidiaries Closing balance at 31 December 2010	10,954,673 (14,712,738) 741,871 (1,420,372) (4,436,566) - 1,533,124 - - 1,533,124 - - - - -
	- 1,533,124 - - 1,533,124 700,000 - - - 700,000 (11,654,673) 11,654,673 - - - 750,000 - - - 750,000 1,732,500 - - - 1,732,500 (161,892) - - - (161,892) - - - 1,420,372 1,420,372
	2,320,608 (1,524,941) 741,871 - 1,537,538

The statement of changes on equity should be read in conjunction with the attached notes to the financial statements.

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Safety Medical Products Limited Statement of Financial Position As at 31 December 2011

Safety Medical Products Limited Statement of Financial Position As at 31 December 2011
Note	31 Dec 2011 $ 30 Jun 2011 $
Assets Current assets Cash and cash equivalents Trade and other receivables Prepayments Total current assets Non-current assets Deferred acquisition costs 3 Total non-current assets Total assets Liabilities Current liabilities Trade and other payables Total current liabilities Total liabilities Net assets/(liabilities) Equity Issued capital Accumulated losses Total Equity	1,282,943 1,546,875 59,045 36,018 42,461 4,995
	1,384,449 1,587,888
	330,000 280,000
	330,000 280,000
	1,714,449 1,867,888
	53,422 36,888
	53,422 36,888
	53,422 36,888
	1,661,027 1,831,000
	2,779,628 2,779,628 (1,118,601) (948,628)
	1,661,027 1,831,000

The statement of financial position should be read in conjunction with the attached notes to the financial statements.

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Safety Medical Products Limited Statement of Cash Flows For the half year ended 31 December 2010

Safety Medical Products Limited Statement of Cash Flows For the half year ended 31 December 2010
Note	31 Dec 2011 $ 31 Dec 2010 $
Cash flows from operating activities Cash receipts from customers Cash paid to suppliers and employees Cash generated used in operations Interest paid Net cash used in operating activities Cash flows from investing activities Interest received Proceeds from sale of property, plant and equipment Acquisition of exploration assets Net cash (used in) / from investing activities Cash flows from financing activities Proceeds from issue of share capital Payments made under DOCA Capital raising costs paid Net cash from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at 1 July Cash and cash equivalents at 31 December	- 18,159 (262,559) (259,882)
	(262,559) (241,723) (310) (1,501)
	(262,869) (243,224)
	48,938 1,279 - 66,025 (50,000) -
	(1,062) 67,304
	- 2,637,500 - (973,025) - (161,892)
	- 1,502,582
	(263,931) 1,326,662 1,546,875 501,311
	1,282,944 1,827,973

The statement of cash flows is to be read in conjunction with the attached notes to the financial statements.

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Safety Medical Products Limited Condensed notes to the financial statements For the half year ended 31 December 2011

1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

Basis of preparation

These general purpose financial statements for the interim half-year reporting period ended 31 December 2011 have been prepared in accordance with requirements of the Corporations Act 2001 and Australian Accounting Standards including AASB 134: Interim Financial Reporting. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards.

This interim financial report is intended to provide users with an update on the latest annual financial statements of Safety Medical Products Limited (the "Company"). As such, it does not contain information that represents relatively insignificant changes occurring during the half-year within the company. It is therefore recommended that this financial report be read in conjunction with the annual financial statements of the company for the year ended 30 June 2011, together with any public announcements made during the half-year.

The interim financial statements have been prepared in accordance with the accounting policies adopted in the Company's last annual financial statements for the year ended 30 June 2011, except for the adoption of Improvements to AASBs 2010 (2010 Improvements) as of 1 January 2011. The 2010 Improvements made several minor amendments to AASBs. The relevant amendments and their effects on the current period or prior periods are described below.

The accounting policies have been applied consistently throughout the Company for the purposes of preparation of these interim financial statements.

Amendment to AASB 101 Presentation of Financial Statements

The amendment provides a choice of presenting the reconciliations for each component of other comprehensive income either in the statement of changes in equity or in the notes to the financial statements. The Company has elected to retain reconciliations within the Statement of Changes in Equity as previously disclosed.

Amendments to AASB 134 Interim Financial Reporting

The amendments clarified certain disclosures relating to events and transactions that are significant to an understanding of changes in the Company’s circumstances since the last annual financial statements. The Company’s interim financial statements as of 31 December 2011 reflect these amended disclosure requirements, where applicable.

Limitation on preparation – Comparative information

On 15 April 2010 the Directors of Safety Medical Products Limited (“the Company” or “SafetyMed”) at that time appointed McGrathNicol as Administrators of the Company and its subsidiary undertakings. On 13 August 2010 the Company entered into a Deed of Company Arrangement and Reconstruction Deed which provides for existing debts as at the time of appointment of the Administrators to be extinguished and facilitates the Company being recapitalised and reinstated to quotation on the Australian Securities Exchange (ASX).

At a creditors meeting on 23 July 2010 the creditors voted to place the Company’s subsidiaries Baratex Pty Ltd and Pureste Pty Ltd into liquidation. The subsidiaries have been deconsolidated as at that date.The operations of the Company were controlled by the Administrator up until the date of effectuation of the DOCA being 25 November 2010.

Every effort has been made by the Directors to ascertain the true position of the Safety Medical Products Limited (Subject to Deed of Company Arrangement) and its Controlled Entity as at 31 December 2010. However, there may be information that the Directors have not been able to obtain, the impact of which may or may not have been material on the accounts as at that date. This matter effects the comparative information contained within the statement of comprehensive income, statement of changes in equity, and the statement of cash flows, dated 31 December 2010. This matter does not affect comparatives for the statement of financial position, dated 30 June 2011.

Reporting Basis and Conventions

The half-year report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied.

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Safety Medical Products Limited Condensed notes to the financial statements For the half year ended 31 December 2011

2 SEGMENT REPORTING

(i) Segment performance Six months ended 31.12.2011 Total segment revenue Total segment expenses Segment net profit/(loss) before tax Reconciliation of segment result to company net loss Unallocated items Other revenue Other expenses Net loss before tax from continuing operations Six months ended 31.12.2010 Total segment revenue Total segment expenses Segment net profit/(loss) before tax Reconciliation of segment result to company net loss Unallocated items Other revenue Other expenses Net loss before tax from continuing operations (ii) Segment assets Opening balance 30 June 2011 Segment assets Additions Disposals Other movements in segment assets Closing balance 31 December 2011	(i) Segment performance Six months ended 31.12.2011 Total segment revenue Total segment expenses Segment net profit/(loss) before tax Reconciliation of segment result to company net loss Unallocated items Other revenue Other expenses Net loss before tax from continuing operations Six months ended 31.12.2010 Total segment revenue Total segment expenses Segment net profit/(loss) before tax Reconciliation of segment result to company net loss Unallocated items Other revenue Other expenses Net loss before tax from continuing operations (ii) Segment assets Opening balance 30 June 2011 Segment assets Additions Disposals Other movements in segment assets Closing balance 31 December 2011	SafetyMed Exploration & Evaluation - - (204,462) (14,139)	Total $ - (218,601)
		(204,462) (14,139)	(218,601)
		821,982 - (171,048) -	48,938 (310)
			(169,973)
			821,982 (171,048)
		650,934 -	650,934
		1,587,888 280,000 - - - - (203,439) 50,000	1,279 (133,643)
			518,570
			1,867,888 - - (253,439)
		1,384,449 330,000	1,714,449

3 DEFERRED ACQUISITION COSTS

During the year, SafetyMed paid consideration to Brutus Constructions Pty Ltd (“Vendor”) for the Option to acquire Three Rivers west and north tenements. On 12[th] April 2011, $100,000 cash was paid to the Vendor in addition to 10,000,000 ordinary shares at $0.018. Subsequent to year end, an extension of 13 months was granted for the consideration of $50,000.

4 CONTINGENT LIABILITIES

There are no contingent liabilities as at the date of this report.

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Safety Medical Products Limited Directors declaration

Except for the effect if any of the limitations on the preparation of the financial report discussed in note 1, the Directors of the Company declare that:

• a) the financial statements and notes set out on pages 6 to 11, are in accordance with the Corporations Act 2001, including:

• (i) giving a true and fair view of the financial position of the Company and the consolidated entity as at 31 December 2011 and of its performance for the six month period ended on that date; and

• (ii) complying with Accounting Standards AASB 134 Interim Financial Reporting and the Corporations Regulations 2001; and

• b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Dated at Perth this 29th day of February 2012

This declaration is signed in accordance with a resolution of the directors made pursuant to s.303(5) of the Corporations Act 2001 :

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Simon Lill Director

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We have reviewed the accompanying half-year financial report of Safety Medical Products Limited (“the Company”) which comprises the statement of financial position as at 31 December 2011, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, a statement of accounting policies, other selected explanatory notes and the directors’ declaration.

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The directors of the Company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

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Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Company’s financial position as at 31 December 2011 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Safety Medical Products Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.

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As noted in Note 1 to the financial statements, on 15 April 2010 the Company appointed an Administrator. The Administrator’s appointment was to Safety Medical Products Limited and the subsidiaries at that time. The current Directors were appointed on 6 October 2010 and were not Directors prior to that date, nor were they parties involved with the Consolidated Entity.

Every effort has been made by the Directors to ascertain the true position of the Safety Medical Products Limited (Subject to Deed of Company Arrangement) and its Controlled Entity as at 31 December 2010. However, there may be information that the Directors have not been able to obtain, the impact of which may or may not have been material on the accounts as at that date. This matter effects the comparative information contained within the statement of comprehensive income, statement of changes in equity, and the statement of cash flows, dated 31 December 2010. This matter does not affect comparatives for the statement of financial position, dated 30 June 2011.

As a consequence of the above matters, in the half year report of Safety Medical Products Limited, as at 31 December 2010, a qualified opinion was given. Based upon these circumstances, we are therefore unable to obtain sufficient appropriate audit evidence regarding the comparative information relating to the 31 December 2011 statement of comprehensive income, statement of changes in equity, and the statement of cash flows and consequently, we were unable to determine whether any adjustments to these amounts were necessary.

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Based on our review, which is not an audit, with the exception of the matter described in the preceding paragraphs, we have not become aware of any matter that makes us believe that the half-year financial report of Safety Medical Products Limited is not in accordance with the Corporations Act 2001 including:

• a. Giving a true and fair view of the Company’s financial position as at 31 December 2011 and of its performance for the half-year ended on that date; and

• b. Complying with Accounting Standard AASB 134: Interim Financial Reporting and Corporations Regulations 2001.

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BENTLEYS Chartered Accountants

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RICHARD JOUGHIN CA Director

DATED at PERTH this 29[th] day of February 2012

Safety Medical Products Limited Corporate directory

Offices and officers

Directors

Peter Christie Simon Lill Stephen Hewitt-Dutton

Company Secretary

Stephen Hewitt-Dutton

Principal registered office

Safety Medical Products Limited

c/o Trident Management Services Pty Ltd Level 24 44 ST George’s Terrace Perth, WA 6000

Principal place of business

Safety Medical Products Limited Level 24 44 ST George’s Terrace Perth, WA 6000

Location of Share Registry

Registries Limited Level 7

207 Kent Street Sydney NSW 2000 Telephone: 02 9290 9600

Stock Exchange

The Company is listed on the Australian Securities Exchange. The Home Exchange is Perth.

Other Information

Safety Medical Products Limited, incorporated and domiciled in Australia, is a publicly listed company limited by shares.

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