MACH7 TECHNOLOGIES LIMITED — Interim / Quarterly Report 2021

Apr 11, 2021

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ASX Announcement

Third Quarter FY21 Business Update

Record Quarterly Cash Receipts – Leading to Strong Operating Cash Flows Result

Highlights:

• ♦ Record quarterly cash receipts $8.4M (98% increase over Q2)

• ♦ Q3 positive cash flow from operations $3.3M (375% increase over Q2)

• ♦ Cash on hand has increased to $18M (from $14.4M Q2)

• ♦ Q3 sales orders $12.8M (Q2 $7.6M), $23.6M YTD (TCV[1] )

• ♦ Customer deployments continue to make good progress

• ♦ 2021 Global Enterprise Imaging Solutions Product Leadership Award by Frost and Sullivan

Melbourne, Australia; 12 April 2021 : Mach7 Technologies Limited (“Mach7” or the “Company”) (ASX:M7T) is pleased to provide this quarterly update in conjunction with the release of the Appendix 4C – Quarterly Cash Flow Report.

Q3 Cashflows

The Company recorded its highest ever cash receipts from customers this quarter, of $8.35 million (Q2: $4.25M), taking total cash receipts to $16.36 million year-to-date (FY20 YTD $10.52M). Operating payments (net of interest received and government rebates) for the quarter of $5.04 million included $0.5 million paid to advisors used for the acquisition of Client Outlook and are otherwise in line with the previous quarter (Q2: $4.57M).

The large inflow of cash from our customers this quarter has led to a positive $3.33 million cash flow from operations, which has resulted in a year-to-date positive cash flow of $1.17 million. Pleasingly, this year-to-date performance has Mach7 on track to deliver a positive free cash flow for the full year in line with the Company’s expectations. Mach7 has ended the quarter in a strong financial position with $17.95 million (Q2: $14.43 million) cash on hand and no debt.

Sales Growth

Mach7 generated $12.84 million (total contract value[1] ) of new sales orders for the quarter (Q2: $7.60M), taking the total year to date to $23.58 million (FY20 YTD $10.24M). Of the year-todate sales orders, $2.75 million is annually recurring revenue over the life of the contracts.

1 Total Contract Value (TCV) means software license fees, professional service fees and annual support (or annual subscription) over the life of the contract

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Mach7 Technologies Limited ABN 26 007 817 192 ASX:M7T

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ASX Announcement

New Sales Orders and Contracts

Mach7 signed new contracts and sales orders this quarter with existing customers and reseller partners, including Adventist Health System West, Metro Health, Ambra Health, Hospital Authority of Hong Kong, and St. Teresa’s Hospital (Hong Kong).

In January, the Company announced it had contracted with Adventist Health System West, a non-profit integrated health system operating in California, Hawaii and Oregon, for the license of Mach7’s PACS (Picture Archive Communication System) solution and associated services. This contract has already generated 8 new orders from separate sites this quarter. The first of these orders is for a full PACS replacement at one of 22 sites and encompasses Mach7’s Enterprise Imaging Platform, eUnity Diagnostic Viewer, Universal Worklist, QC Module, and Clinical Portal. The 7 remaining sales orders are for data migration at six locations throughout the health system. These sites had an urgent need to migrate data out of their old systems. The data will be migrated and housed in a cache server until Mach7’s Vendor Neutral Archive (VNA) is implemented. Mach7 expects further orders from Adventist in the coming weeks from the PACS replacement contract signed in January.

Metro Health, part of the University of Michigan Health network (an existing Mach7 customer), contracted with Mach7 to provide eUnity to serve as a clinical reference viewer. eUnity’s flexibility was a key aspect of the solution that appealed to Metro Health and ultimately led to its selection.

The Hospital Authority of Hong Kong (HA) has contracted with Mach7 to provide a research VNA. HA is building a new AI and data analysis platform which will be powered by Mach7. The VNA will provide the primary image repository for training their AI algorithms and for their AI to perform image-level analysis to help with patient diagnosis throughout their 43 hospitals. HA preferred the Mach7 system as it presented an open, standards-based platform that would easily interface to their many AI projects.

St. Teresa's Hospital (STH) has contracted to extend the Mach7 solution to tie into the eHRSS platform, which is Hong Kong's national EHR. STH will be one of the first private healthcare providers in Hong Kong to send images to eHRSS, and our robust understanding of their workflow will allow us to ensure imaging data for consenting patients will be made available in eHRSS.

Mach7’s partner resellers continue to make valuable contributions to sales orders. This quarter, Lucid Health landed two contracts, Genesis Health System in Iowa and Beloit Health System in Wisconsin. Allscripts closed two additional deals, one with Mercy Iowa City, part of the MercyOne network, and the other with Ascension Health, one of the largest private healthcare systems in the United States. Ambra Health contracted with the Company to provide an eUnity instance to their cloud infrastructure. This will give Ambra’s customers the flexibility to choose either a local or cloud-based install of the software.

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Mach7 Technologies Limited ABN 26 007 817 192 ASX:M7T

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ASX Announcement

Contract Renewals

In addition to new sales orders and contracts, the Company renewed contracts with three existing customers: Marshfield Clinic, University of California San Francisco (UCSF) and Duke University.

Marshfield Clinic Health System, an IDN operating in Wisconsin, has been a long-time user of eUnity, which continues to play a critical role in their care path as they transition to a new EHR platform in 2021. As one of the largest standing multi-specialty practices in the United States, with over 50 locations and thousands of users, eUnity’s performance continues to drive exceptional image access for everyone within the Marshfield community.

UCSF is a long-time customer using Mach7’s eUnity enterprise viewer for image display integrated to their EHR. eUnity is popular and well-liked among UCSF’s physicians, and as such have renewed their contract for another 3 years. In addition to this renewal, UCSF plans to add 3D and PET/CT capabilities to eUnity later this summer, and further expand their procedure volume within one of their affiliate sites in the near future.

Finally, Duke University in North Carolina has renewed their contract to use Mach7’s eUnity Enterprise Viewer for an additional year.

Customer Deployments

Steady progress continues with Mach7 solution deployment at several customer sites, including Adventist Health, Advocate Aurora Health, Desert Imaging, Regional Imaging, and MaineHealth.

This quarter, one of our newest customers, Adventist Health went live with eUnity enterprise viewing. Mach7 is now providing access to approximately 1.5 million studies and over 250 concurrent users. The number of users is expected to increase as more modules are integrated to the system. The next Adventist project kick-off will be full PACS replacement at their Tillamook location, as mentioned in the New Sales Orders and Contracts section above.

At Advocate Aurora Health (AAH), Mach7 is completing the final tasks for implementation and is working with the customer to obtain final system sign-off. The Mach7 system is handling large quantities of HL7 and DICOM messages with relative ease, and we are increasing migrations from legacy systems. Advocate Aurora continues to be impressed by Mach7’s nimbleness and ability to quickly adapt to their needs. In the coming weeks, the implementation team will work toward full archiving of AAH’s radiology PACS.

Desert Imaging, a radiology center in El Paso, Texas, is now live on the eUnity enterprise viewer, which the customer is using to image enable their site portal. Mach7 is filling an

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Mach7 Technologies Limited ABN 26 007 817 192 ASX:M7T

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ASX Announcement

immediate need for the site, which was using a legacy Flash-based enterprise viewer that was at its end-of-life.

At Regional Imaging, Mach7 is now enabling teleradiology services with our Universal Worklist and eUnity viewer, as well as various workflow rules for the site’s radiology group. This was a rapid implementation that was completed without loss of quality or customer service. This quarter, MaineHealth’s Waldo site reached go-live status, with their radiologists fully utilizing Mach7’s Universal Worklist and eUnity viewer. The implementation team will begin work on deploying the Mach7 solution at the next site in the MaineHealth system.

Frost & Sullivan Award

Mach7 has been recognised as an industry leader by business consulting firm Frost & Sullivan, who have awarded the Company the 2021 Global Enterprise Imaging Solutions Product Leadership Award.

The award validates Mach7's product and business strategy of combining its industry-leading vendor neutral data management (VNA) and clinical workflow communication applications with the award-winning eUnity diagnostic and enterprise viewing platform. Additionally, the award confirms the proven value Mach7's Enterprise Imaging Solution brings to the global healthcare community in driving quality care and patient outcomes in a way that sets it apart from legacy PACS and positions the Company for future success.

Frost & Sullivan uses a detailed analysis of best practices criteria across two dimensions to evaluate award nominees. These dimensions are Product Portfolio Attributes and Business Impact. Criteria evaluated under Product Portfolio Attributes include Match to Customer Needs, Reliability and Quality, Product/Service Value, Positioning, and Design. Criteria evaluated under Business Impact include Financial Performance, Customer Acquisition, Operational Efficiency, Growth Potential, and Human Capital. In their analysis, Frost & Sullivan commended Mach7 for excelling in many of these criteria as they pertain to the enterprise imaging solutions space.

Steve Rankin, Mach7’s Chief Product Officer, will formally accept this award on Mach7’s behalf at Frost & Sullivan’s Virtual Award Ceremony later this year.

This announcement has been approved for lodgment by the Board.

About Mach7 Technologies:

Mach7 Technologies (ASX:M7T) develops innovative data management solutions that create a clear and complete view of the patient to inform diagnosis, reduce care delivery delays and costs, and improve patient outcomes. Mach7’s award-winning enterprise imaging platform provides a vendor neutral foundation for unstructured data consolidation and communication to power interoperability and enables healthcare enterprises to build their bestof-breed clinical ecosystems. Mach7’s sophisticated workflow tools, advanced clinical viewing and optimized vendor neutral archiving solutions unlock silos of legacy systems empowering healthcare providers to own, access and share patient data without boundaries. Visit Mach7t.com.

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Mach7 Technologies Limited ABN 26 007 817 192 ASX:M7T

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ASX Announcement

For more information, contact:

Jenni Pilcher CFO, Mach7 jenni.pilcher@mach7t.com

Andrew Keys Investor Relations andrew.keys@keysthomas.com

Registered Office: Level 2, 20 Collins Street Melbourne, 3000

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Mach7 Technologies Limited ABN 26 007 817 192 ASX:M7T