MACH7 TECHNOLOGIES LIMITED — Interim / Quarterly Report 2013

Feb 27, 2013

Safety Medical Products Limited

Appendix 4D

Name of entity	Safety Medical Products Limited	Safety Medical Products Limited
ABN	26 007 817 192
ASX listing code		SFP
			31 Dec 12		31 Dec 11
	Revenue / Profit	Movement Change(%)	$		$
	Revenue from ordinary activities	- -		-	-
Profit from ordinary activities after tax attributable to members		 (60.9)	(273,428)		(169,973)
Net profit for	the period attributable to members	 (60.9)	(273,428)		(169,973)
					Franked
			Amount Per		Amount per
		Revenue / Profit	Security		Security
	Dividends Paid in respect of prior year:
		Interim Dividend		0.0c	0.0c
		Final Dividend		0.0c	0.0c
	Dividends declared in respect of current year:
		Interim Dividend (*)		0.0c	0.0c
	* No interim dividend was declared
			31 Dec 12		31 Dec 11
		Net Tangible Assets	Cents		Cents
Net tangible assets per share:		(2012: 396,455,466 shares) (2011: 396,455,466 shares)	0.003		0.004

Brief explanation of any figures reported above: The loss for the period includes expense relation to administration expenses and exploration expenditure. Refer attached Financial Report for additional details.

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SAFETY MEDICAL PRODUCTS LIMITED

ABN 26 007 817 192

HALF YEAR FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2012

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Safety Medical Products Limited

Contents	**Page **
Directors’ report	3
Statement of profit or loss and other comprehensive income	6
Statement of financial position	7
Statement of changes in equity	8
Statement of cash flow	9
Notes to the financial statements	10
Directors’ declaration	13
Independent auditor’s review report	14
Corporate directory	16

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Safety Medical Products Limited Directors’ Report For the six months ended 31 December 2012

The directors present their report together with the financial report for the six months ended 31 December 2012 and the review report thereon.

Officeholders

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

Name

Non-executive Peter Christie (Chairman) Simon Lill Stephen Hewitt-Dutton

Review of operations

Overview

The Statement of Profit or Loss and Other Comprehensive Income shows a net loss attributable to members of $273,428 compared with $169,973 loss for the previous corresponding period.

Review of principal business activities

During the current year, the Company entered into a Heads of Agreement to acquire Kisara Gold Pty Ltd (“Kisara”), an Australian unlisted company, and its wholly owned Brazilian subsidiary Mineração Caiçara Ltda (“Caiçara”). Kisara is the holder of 3 mineral exploration projects in the state of Bahia in Brazil. The project, which has been detailed in an announcement released to the ASX are prospective for gold. The Company is currently finalising the formal acquisition agreement and following execution of the agreement will seek shareholder approval of the acquisition.

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, Australia 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.

During the prior year, 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. An extension to 31 January 2013 was granted which has since expired. The directors have commenced discussions with the tenement owners with a view to maintaining an interest in the tenements on renegotiated terms.

Events subsequent to reporting date

The option over tenements in the Three Rivers Area of northern Western Australia expired on 31[st] January 2013. The Company has continued discussions with the tenement owner with a view to maintaining an interest on renegotiated terms.

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Safety Medical Products Limited Directors’ Report For the six months ended 31 December 2012

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 2012.

Dated at Perth this 28[th] day of February 2013

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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As lead audit director for the review of the financial statements of Safety Medical Products Limited for the half year ended 31 December 2012, I declare that to the best of my knowledge and belief, there have been no contraventions of:

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• the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

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• any applicable code of professional conduct in relation to the review.

Yours faithfully

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BENTLEYS Chartered Accountants

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MARK DELAURENTIS CA Director

DATED at PERTH this 28[th] day of February 2013

Safety Medical Products Limited Statement of Profit or Loss and Other Comprehensive Income For the half year ended 31 December 2012

For the half year ended 31 December 2012
Note	31 Dec 2012 $ 31 Dec 2011 $
Revenue Cost of sales Gross profit Other income Business development, marketing and intellectual property expenses Accounting and audit fees Directors’ and Company Secretarial fees Legal fees Consultancy and Corporate Advisors fees Exploration expenses Administrative expenses Results from operating activities Financial income Financial expense Impairment Loss (Loss) before tax Income tax expense (Loss) for the half-year Other comprehensive income Total comprehensive income for the half year Earnings per Share: From continuing operations Basic earnings per share (cents)	- - - -
	- - - - (267) (3,751) (26,425) (28,326) (80,000) (80,000) (38,753) (800) (76,550) (75,718) (21,895) (41,411) - (30,006)
	(285,301) (218,601) 12,174 48,938 (301) (310) - -
	(273,428) (169,973) - -
	(273,428) (169,973)
	- -
	(273,428) (169,973)
	(0.07) (0.04)

The statement of profit or loss and other 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 Financial Position As at 31 December 2012

Safety Medical Products Limited Statement of Financial Position As at 31 December 2012
Note	31 Dec 2012 $ 30 Jun 2012 $
Assets Current assets Cash and cash equivalents Trade and other receivables 4 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	304,234 999,423 518,731 155,984 - -
	822,965 1,155,407
	334,941 330,000
	334,941 330,000
	1,157,906 1,485,407
	24,008 78,081
	24,008 **78,081 **
	24,008 78,081
	1,133,898 1,407,326
	2,779,628 2,779,628 (1,645,730) (1,372,302)
	1,133,898 1,407,326

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 Changes in Equity For the half year ended 31 December 2012

2012 Note	Issued Capital Accumulated losses Equity compensation reserve Minority Interest Total equity $ $ $ $ $
Opening balance at 1 July 2012 (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 2012	2,779,628 (1,372,302) - - 1,407,326 - (273,428) - - (273,428) - - - - -
	- (273,428) - - (273,428) - - - - - - - - - - - - -
	2,779,628 (1,645,730) - - 1,133,898

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	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

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 Cash Flows For the half year ended 31 December 2012

	Note	31 Dec 2012 $ 31 Dec 2011 $
Cash flows from operating activities Cash receipts from customers Cash paid to suppliers and employees 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 Advancement to third party 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		- - (319,957) (262,559) (301) (310)
		(320,258) (262,869)
		12,174 48,938 - - (17,105) (50,000)
		(4,931) (1,062)
		(370,000) -
		(370,000) -
		(695,189) (263,931) 999,423 1,546,875
		304,234 1,282,944

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 Notes to the financial statements For the half year ended 31 December 2012

1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

Basis of preparation

These general purpose financial statements for the interim half-year reporting period ended 31 December 2012 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 2012, together with any public announcements made during the half-year.

The Company has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to their operations and effective for the current half year. New and revised Standards and amendments thereof and Interpretations effective for the current half-year that are relevant to the Company include:

Amendments to AASB 1, 5, 7, 101, 112, 120, 121, 132, 133 and 134 as a consequence of AASB 2011-9 ‘Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income’

The adoption of all the new and revised Standards and Interpretations has not resulted in any changes to the Company’s accounting policies and has no effect on the amounts reported for the current or prior half-years. However, the application of AASB 2011-9 has resulted in changes to the Company’s presentation of, or disclosure in, its half-year financial statements.

Amendment to AASB 101 Presentation of Financial Statements

Under the amendments to AASB 101, the statement of comprehensive income is renamed as a statement of profit or loss and other comprehensive income. The amendments also require items of other comprehensive income to be grouped into two categories in the other comprehensive income section: (a) items that will not be reclassified subsequently to profit or loss and (b) items that may be reclassified subsequently to profit or loss when specific conditions are met. The amendments have been applied retrospectively and the application of the amendments to AASB 101 do not result in any impact on profit or loss, other comprehensive income and total comprehensive income.

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.

Going Concern

The financial report has been prepared on the going concern basis, which contemplates continuity of normal business activities and the realisation of assets and settlements of liabilities in the ordinary course of business. The company incurred an operating loss of $273,428 for the period ended 31 December 2012 (31 December 2011: $169,973) and a net cash outflow from operating activities amounting to $320,258 (31 December 2011: $ 262,869).

The ability of the Company to continue to pay its debts as and when they fall due is dependent upon the Company successfully raising additional share capital. This condition indicates a material uncertainty that may cast significant doubt about the ability of the company to continue as a going concern.

The Directors have prepared a cash flow forecast which indicates that the company will have sufficient cash flow to meet all commitments and working capital requirements for the 12 months period from the date of signing this financial report. The Directors believe it is appropriate to prepare these accounts on a going concern basis because:

The Directors are in the process of finalising the acquisition of Kisara Gold Pty Ltd and have an appropriate plan to raise additional funds as and when they are required. In light of the company’s current exploration projects, the Directors believe that the additional capital required can be raised in the market.

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Safety Medical Products Limited Notes to the financial statements For the half year ended 31 December 2012

1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont..)

Should the company not achieve the matters set out above, there is uncertainty whether it would continue as a going concern and therefore whether it would realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial statements. The financial statements do not include any adjustment relating to the recoverability or classification of recorded asset amounts or to the amounts or classifications of liabilities that might be necessary should the company not be able to continue as a going concern.

2 SEGMENT REPORTING

(i) Segment performance Six months ended 31 December 2012 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 December 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 (ii) Segment assets Opening balance 30 June 2012 Segment assets Additions Disposals Other movements in segment assets Closing balance 31 December 2012	(i) Segment performance Six months ended 31 December 2012 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 December 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 (ii) Segment assets Opening balance 30 June 2012 Segment assets Additions Disposals Other movements in segment assets Closing balance 31 December 2012	SafetyMed Exploration & Evaluation - - (246,856) (38,445)	Total $ - (285,301)
		(246,856) (38,445)	(285,301)
		- - (204,462) (14,139)	12,174 (301)
			(273,428)
			- (218,601)
		(204,462) (14,139)	(218,601)
		1,155,407 330,000 - - - - (332,442) 4,941	48,938 (310)
			169,973
			1,485,407 - - (327,501)
		822,965 334,941	1,157,906

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Safety Medical Products Limited Notes to the financial statements For the half year ended 31 December 2012

3[DEFERRED ACQUISITION COSTS]

During the prior years, the Company paid consideration to Brutus Constructions Pty Ltd (“Vendor”) for the Option to acquire Three Rivers west and north tenements. The consideration being $150,000 cash and 10,000,000 ordinary shares at $0.018. During the year, the Company paid tenement management costs.

4[TRADE AND OTHER RECEIVABLES]

Current Trade receivables Deposits for Kisara acquisition Others	31 Dec 2012 $ 30 June 2012 $
	41,516 54,405 100,000 100,000 377,215 1,579
	518,731 155,984

During the 6 months ended 31 December 2012, $370,000 was paid to Kisara as further advancement under the terms of the Heads of Agreement entered into on 6[th] June 2012. As at 31 December 2012, this is an unsecured loan to Kisara.

5[CONTINGENT LIABILITIES]

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

6[SUBSEQUENT EVENTS ]

The option over tenements in the Three Rivers Area of northern Western Australia expired on 31st January 2013. The Company has continued discussions with the tenement owner with a view to maintaining an interest on renegotiated terms.

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Safety Medical Products Limited Directors declaration

The Directors of the Company declare that:

• a) the financial statements and notes set out on pages 6 to 12, are in accordance with the Corporations Act 2001, including:

• (i) giving a true and fair view of the Company’s financial position as at 31 December 2012 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 28th day of February 2013

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 2012, the statement of profit or loss and other 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 2012 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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Based on our review, which is not an audit, 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 2012 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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Without qualifying our conclusion, we draw our attention to Note 1 of the financial report which indicates that the company incurred a net loss of $273,428 during the period ended 31 December 2012. This condition, along with other matters indicate the existence of a material uncertainty which may cast significant doubt about the ability of the company to continue as a going concern and whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.

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BENTLEYS MARK DELAURENTIS CA Chartered Accountants Director

DATED at PERTH this 28[th] day of February 2013

Safety Medical Products Limited Corporate directory

Offices and officers

Directors

Peter Christie Simon Lill Stephen Hewitt-Dutton

Company Secretary

Deborah Ho

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

Link Market Services Ltd Level 2 178 St Georges Terrace Perth, WA 6000

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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