MACH7 TECHNOLOGIES LIMITED — Interim / Quarterly Report 2015

Feb 26, 2015

3D Medical Limited (Formerly Safety Medical Products Limited) Interim Half-year Report for period ending 31 December 2014

RULE 4.2A

APPENDIX 4D

Half-year Report for the period ending 31 December 2014

1. Name of entity

3D MEDICAL LIMITED (FORMERLY SAFETY MEDICAL PRODUCTS LIMITED)

ABN 26 007 817 192	Reporting Period Half year ended 31 December 2014	Previous Corresponding Period
26 007 817 192	Half year ended 31 December 2014	Half year ended 31 December 2013

2. Results for Announcement to the Market

2. Results for Announcement to the Market	2. Results for Announcement to the Market
Financial Results	31 December 2014
Revenues from ordinary activities_(item 2.1) - Profit from ordinary activities after tax attributable to members (_item 2.2) Up Net profit for the period attributable to members_(item 2.3)_ Up	- to - 62.3% to (249,529) 62.3% to (249,529)
Final and interim dividends_(item 2.4)_	It is not proposed that either a final or interim dividend bepaid .
Record date for determining entitlements to the dividend (item 2.5)	N/A
Brief explanation of any of the figures reported above (item 2.6):	The loss for the period related to administration expenses and costs associated with the acquisition of 3D Medical Limited. The acquisition occurred on 6 February2015.

3. NTA Backing

	Current Period	Previous Corresponding Period
Net tangible assets per ordinary share (Item 3)	0.65 cents	0.13 cents
4. Controlgained over entities
Details of entities over which control has been gained or lost(item 4)	N/A
5. Dividendspaid andpayable
Details of dividends or distributionpayments_(item 5)_	No dividends or distributions arepayable.
6. Dividend reinvestmentplans
Details of dividend or distribution reinvestment plans (item6)	There is no dividend reinvestment program in operation.

3D Medical Limited (Formerly Safety Medical Products Limited) Interim Half-year Report for period ending 31 December 2014

7. Details of associates

Details of associates and joint venture entities (item 7) N/A

8. Foreign entities

Foreign entities to disclose which accounting standards N/A are used in compiling the report (item 8)

9. Review Opinion

Details of any audit dispute or qualification (item 9)

There are no audit disputes or qualifications to the review opinion.

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3D MEDICAL LIMITED (FORMERLY SAFETY MEDICAL PRODUCTS LIMITED)

ABN 26 007 817 192

HALF YEAR FINANCIAL REPORT

FOR THE SIX MONTHS ENDED 31 DECEMBER 2014

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3D Medical Limited

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

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3D Medical Limited Directors’ Report For the six months ended 31 December 2014

The directors of 3D Medical Limited (the " Company ") present their report together with the financial report for the six months ended 31 December 2014 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

Stephen Hewitt-Dutton (Director) ( appointed on 6 October 2010) Peter Christie (Director) ( appointed on 6 October 2010, resigned on 9 February 2015) Simon Jenkins (Director) ( appointed on 20 May 2014, resigned on 9 February 2015) Matthew Morgan (Director) ( appointed on 9 February 2015) Frank Pertile (Director) ( appointed on 9 February 2015)

Review of operations

Overview

The Condensed Statement of Profit or Loss and Other Comprehensive Income show a net loss attributable to members of $249,529 compared with $153,720 loss for the previous corresponding period.

Review of principal business activities

On 8 August 2014, Safety Medical Products Limited) (“ Safety Med ”) entered into a Share Sale and Purchase Agreement to acquire 100% of 3D Medical Limited, an Australian unlisted company focused on the commercialisation and integration of 3D printing and holographic projection technology into the Australian medical industry.

On 24 November 2014, Safety Med issued a Prospectus for the purposes of satisfying Chapters 1 and 2 of the ASX Listing Rules and to satisfy ASX requirements for re-listing following a change to the nature and scale of Safety Med’s activities. The Prospectus offered the following:

1. 60,000,000 New Shares at a price of $0.05 each, to raise a minimum of $3,000,000, with provision to accept oversubscriptions of up to a total of 100,000,000 New Shares at $0.05 to raise a maximum of $5,000,000 (“ Public Offer ”). The Public Offer also incorporates a priority offer of up to 40,000,000 New Shares to eligible shareholders of Capitol Health Limited registered as at the Priority Offer Record Date;

2. 8,750,000 New Shares to the Facilitators;

3. 175,000,000 New Shares to the Vendors as part of the acquisition of all of the shares in 3D Medical Limited; and

4. 116,432,447 Consideration Options to 3D Medical Vendors as part of the acquisition of all the shares in 3D Medical Limited.

On 17 December 2014, the Shareholders of Safety Med approved of the following resolutions at a general meeting:

1. Capital consolidation on a 1:10 basis;

2. Change in nature and scale of activities;

3. Issue of Consideration Shares and Consideration Options to Related 3D Medical Vendors;

4. Issue of Consideration Shares and Consideration Options to Unrelated 3D Medical Vendors;

5. Issue of New Shares Pursuant to the Capital Raising;

6. Proposed Directors’ right to Apply for Shares Under the Prospectus;

7. Issue of Facilitation Shares to Trident Capital and Taylor Collison;

8. Issue of Advisory Shares to Ken Poutakidis;

9. Change of Company Name to 3D Medical Limited;

10. Appointment of Frank Pertile as a Director; and

11. Appointment of Matthew Morgan as a Director.

On 24 December 2014, Safety Med’s capital was consolidated on a 1:10 basis.

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3D Medical Limited

Directors’ Report For the six months ended 31 December 2014

Events subsequent to reporting date

On 9 January 2015, Safety Med successfully completed its Prospectus capital raising with funds totalling $4,088,600 having been raised.

On 6 February 2015, the Share Sale and Purchase Agreement dated 8 October 2014 between the Company and the vendors of 3D Medical Limited has completed with the Company acquiring 100% of 3D Medical Limited.

On 6 February 2015 and in accordance with the Company’s Prospectus, the following Shares have been issued:

1. Vendor Offer – 175,000,000 Shares issued in consideration for the acquisition of 3D Medical;

2. Option Offer – 116,432,447 Consideration Options issued as part consideration for the acquisition of 3D Medical;

3. Public Offer – 81,772,000 Shares issued at $0.05 per Share having raised $4,088,600; and

4. Facilitation Offer – 8,750,000 Shares to the Facilitators for services provided.

On 9 February 2015, Matthew Morgan and Frank Pertile were appointed as Directors following the resignations of Simon Jenkins and Peter Christie resigned as Directors.

On 11 February 2015, Safety Med officially changed the Company name to 3D Medical Limited.

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 2014.

Dated at Melbourne this 27[th] day of February 2015.

Signed in accordance with a resolution of the directors:

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Matthew Morgan Chairman

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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 3D Medical Limited for the half year ended 31 December 2014, 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 27[th] day of February 2015

3D Medical Limited Condensed Statement of Profit or Loss and Other Comprehensive Income For the half year ended 31 December 2014

For the halfyear ended 31 December 2014
Note	31 Dec 2014 $ 31 Dec 2013 $
Revenue Cost of sales Gross profit Business development, marketing and intellectual property expenses Accounting and audit fees Directors’ and Company Secretarial fees Legal fees Consultancy and Corporate Advisors fees Administrative expenses Other expenses Results from operating activities Financial income Financial expense (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)	- - - -
	- - (5,178) (1,017) (54,001) (15,480) (80,000) (80,000) (31,450) (275) - (14,910) (81,873) (31,985) - (9,862)
	(252,502) (153,729) 3,311 247 (338) (438)
	(249,529) (153,720) - -
	(249,529) (153,720)
	- -
	(249,529) (153,720)
	(0.03) (0.04)

The condensed 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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3D Medical Limited Condensed Statement of Financial Position As at 31 December 2014

3D Medical Limited Condensed Statement of Financial Position As at 31 December 2014
Note	31 Dec 2014 $ 30 Jun 2014 $
Assets Cash and cash equivalents Trade and other receivables Loan receivable 3 Total current assets Non-current assets Deferred acquisition cost 2 Total non-current assets Total assets Liabilities Trade and other payables 5 Total current liabilities Total liabilities Net assets Equity Issued capital 4 Accumulated losses Total equity	4,163,575 566,836 49,829 7,469 510,000 -
	4,723,404 574,305
	100,000 50,000
	100,000 50,000
	4,823,404 624,305
	(4,118,135) (85,799)
	(4,118,135) (85,799)
	(4,118,135) (85,799)
	705,269 538,506
	3,568,185 3,151,893 (2,862,916) (2,613,387)
	705,269 538,506

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

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3D Medical Limited Condensed Statement of Changes in Equity For the half year ended 31 December 2014

2014 Note	Issued Capital Accumulated losses Total equity $ $ $
Opening balance at 1 July 2014 (Loss) for the half-year Other comprehensive income Transactions with owners in their capacity as owners, and other transfers Shares Issued 4 Transaction costs Closing balance at 31 December 2014	3,151,893 (2,613,387) 538,506 - (249,529) (249,529) - - -
	440,000 - 440,000 (23,708) - (23,708)
	3,568,185 (2,862,916) 705,269

2013 Note	Issued Capital Accumulated losses Total equity $ $ $
Opening balance at 1 July 2013 (Loss) for the half-year Other comprehensive income Transactions with owners in their capacity as owners, and other transfers Shares Issued 4 Transaction costs Closing balance at 31 December 2013	2,779,628 (2,311,115) 468,513 - (153,720) (153,720) - - -
	- - - 347,063 - 347,063 - - -
	3,126,691 (2,464,835) 661,856

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

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3D Medical Limited Condensed Statement of Cash Flows For the half year ended 31 December 2014

3D Medical Limited Condensed Statement of Cash Flows For the halfyear ended 31 December 2014
Note	31 Dec 2014 $ 31 Dec 2013 $
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 Acquisition of exploration assets Loan to 3D Medical Ltd Net cash (used in) / from investing activities Cash flows from financing activities Proceeds from issue of shares Proceeds on share yet to be allotted 5 Payments for share issue costs 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	- - (301,126) (85,284) (338) (438)
	(301,464) (85,722)
	3,311 247 (100,000) - (510,000) -
	(606,689) 247
	440,000 100,000 4,088,600 148,000 (23,708) -
	4,504,892 248,000
	3,596,739 162,525 566,836 26,606
	4,163,575 **189,131 **

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

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3D Medical Limited Notes to the Financial Statements

1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

Basis of preparation

These general purpose financial statements for the interim half-year reporting period ended 31 December 2014 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 3D Medical Limited . 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 2014, 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 (the 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 include:

• AASB 1031 ‘Materiality’ (2013)

• AASB 2012-3 ‘Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities’

• AASB 2013-3 ‘Amendments to AASB 136 – Recoverable Amount Disclosures for Non Financial Assets’

• AASB 2013-9 ‘Amendments to Australian Accounting Standards’ – Part B: ‘Materiality’

• AASB 2014-1 ‘Amendments to Australian Accounting Standards’

• Part C: ‘Materiality’

The adoption of the above standards has not had a material impact on this half year financial report.

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 a going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the ordinary course of business.

The Company incurred a loss for the half year of $249,529 and net cash outflows of $301,464. As at 31 December 2014, the Company had a working capital surplus of $605,269.

The directors have prepared a cash flow forecast, which indicates that the Company will have sufficient cash flows to meet all commitments and working capital requirements for the 12 month period from the date of signing this financial report. The Directors believe it is appropriate to prepare these accounts on a going concern basis as the Company had raised $4,088,600 under the Prospectus public offer. This amount is a liability as at 31 December 2014 as shares were still to be allotted. In February 2015, 81,722,000 shares were issued at $0.05 per share.

Based on the cash flow forecasts and other factors referred to above, the directors are satisfied that the going concern basis of preparation is appropriate. In particular, given the Company’s working capital surplus and expected operating cash flows to be generated from 3D Medical for the period of 12 months from the date of this report.

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3D Medical Limited Notes to the Financial Statements

2 DEFERRED ACQUISITION COSTS

During the half year, $100,000 was advanced to 3D Medical Ltd (“3DM”) as contemplated in the Share Sale Agreement.

3 LOAN RECEIVABLE

In July 2014 and August 2014, loan advances totalling $510,000 were made to 3DM under a loan agreement entered into during the half year. Subsequent to year end, the acquisition of 3DM was completed and the loan receivable is recognised as an inter-company loan going forward.

4 SHARE CAPITAL

SHARE CAPITAL
Issued and paid-up capital 31 December 2014 (30 June 2014: 855,868,074) ordinary shares fully paid, net of capital raising cost Ordinary shares Balance at 1 July 2014 Share purchase plan(i) Capital consolidation(ii) Capital raising costs Balance at 31 December 2014	31 Dec 2014 $ 30 Jun 2014 $ 3,568,185 3,151,893
	No. $
	855,868,074 3,151,893 220,000,000 440,000 (968,281,473) - - (23,708)
	107,586,601 3,568,185

(i) On 8 August 2014, 220,000,000 shares issued at $0.002 per share under a Share Purchase Place to provide funds to assist the Company.

(ii) On 24 December 2014, the Company’s issued capital was consolidated on a 1:10 basis as approved by Shareholders at the Company General Meeting held on 17 December 2014.

5 TRADE AND OTHER PAYABLES

Trade Creditors and accrued expenses Monies received for shares yet to be allotted(i) Balance at 31 December 2014	31 Dec 2014 $ 30 Jun 2014 $
	29,535 85,799 4,088,600 -
	4,118,135 85,799

(i) As at 31 December 2014, the Company raised $4,088,600 under the Company’s Prospectus Public Offering. The monies were held on trust until the shares were issued on 6 February 2015.

6 CONTINGENT LIABILITIES

In November 2014, the Company entered into an agreement with Taylor Collison Pty Ltd and Trident Capital whereby the companies will receive $50,000 each as a facilitation fee to the Company’s Prospectus Public Offer. It was agreed that the amount is to be paid upon completion of the acquisition of 3D Medical Limited (“Completion”). In addition to this, there is a 6% capital raising fee on all monies raised through the Prospectus public raising. Subsequent to 31 December 2014, Completion occurred and on 6 February 2015 and all these costs were settled.

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3D Medical Limited Notes to the Financial Statements

7 SUBSEQUENT EVENTS

On 9 January 2015 the Company announced that it had successfully completed its Prospectus capital raising with funds totalling $4,088,600 having been raised.

On 6 February 2015, the Share Sale and Purchase Agreement dated 8 October 2014 between the Company and the vendors of 3D Medical Limited (has completed with the Company acquiring 100% of 3D Medical Limited.

On 6 February 2015 and in accordance with the Company’s Prospectus, the following Shares have been issued:

1. Vendor Offer – 175,000,000 Shares issued in consideration for the acquisition of 3D Medical;

2. Option Offer – 116,432,447 Consideration Options issued as part consideration for the acquisition of 3D Medical;

3. Public Offer – 81,772,000 Shares issued at $0.05 per Share having raised $4,088,600; and

4. Facilitation Offer – 8,750,000 Shares to the Facilitators for services provided.

On 9 February 2015, Matthew Morgan and Frank Pertile were appointed as Directors following the resignations of Simon Jenkins and Peter Christie resigned as Directors.

On 11 February 2015, Safety Med had officially changed the Company name to 3D Medical Limited .

8 FINANCIAL INSTRUMENTS

The Company’s financial instruments consist of trade and other receivables and trade and other payables. These financial instruments are measured at amortised cost, less any provision for non-recovery. The carrying amount of the financial assets and liabilities approximate their face value.

The Company’s held for trading financial assets are level-1 financial instruments and valued using the quoted bid prices from the ASX as at the reporting date.

9 BUSINESS COMBINATION

On 6 February 2015, Safety Medical Products Limited (“Safety Med”) successful acquired 100% 3D Medical Limited (“3DM”). The consideration value of the acquisition is $8,750,000 which was settled by the issuance of 175,000,000 shares at $0.05 per share to the Vendors of the acquisition. This share issue was approved by Shareholders at the Company’s general meeting held on 17 December 2014.

3DM is a medical specific 3D printing and holographic projection provider. 3DM’s services which include 3D printing, Echopixel (holographic projection workstation), Gesture (in surgery image control) and Mach 7 (enterprise imaging solution) provides healthcare with the ability to archive, consolidate, access, and share medical imaging data across departments, locations and regions and MediDATA provides medical practices the opportunity to leverage their analytical capabilities to gain an improved understanding of the characteristics of the patients which drive their business.

As the acquisition occurred in February 2015, it is impracticable to determine the effect of and apply all the disclosure required under AASB 3: Business Combinations for reporting for the half year ended 31 December 2014.

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3D Medical 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 2014 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 Melbourne this 27[th] day of February 2015.

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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Matthew Morgan Chairman

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We have reviewed the accompanying half-year financial report of 3D Medical Limited (“the Company”) which comprises the condensed statement of financial position as at 31 December 2014, the condensed statement of profit or loss and other comprehensive income, condensed statement of changes in equity and condensed 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 2014 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 3D Medical 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 3D Medical 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 2014 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 MARK DELAURENTIS CA Chartered Accountants Director

Dated at Perth this 27[th] day of February 2015

3D Medical Limited Corporate directory

Offices and officers

Directors

Matthew Morgan Frank Pertile Stephen Hewitt-Dutton Joint Company Secretaries Deborah Ho Andrew Metcalfe

Principal registered office

3D Medical Limited Unit 4 435 Williamstown Rd Port Melbourne, VIC 3207

Principal place of business

3D Medical Limited Unit 4 435 Williamstown Rd Port Melbourne, VIC 3207

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

3D Medical Limited, incorporated and domiciled in Australia, is a publicly listed company limited by shares.

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