MACH7 TECHNOLOGIES LIMITED — Interim / Quarterly Report 2025

Feb 26, 2025

Mach7 Technologies Limited Appendix 4D Half-year report

1. Company details

Name of entity: Mach7 Technologies Limited ABN: 26 007 817 192 Reporting period: For the half-year ended 31 December 2024 Previous period: For the half-year ended 31 December 2023

2. Results for announcement to the market

			$
Revenues from ordinary activities	up	33.1% to	17,739,317
Loss from ordinary activities after tax attributable to the owners of Mach7
Technologies Limited	down	59.7% to	(1,868,692)
Loss for the half-year attributable to the owners of Mach7 Technologies
Limited	down	59.7% to	(1,868,692)

Dividends

There were no dividends paid, recommended or declared during the current financial period.

Comments

The loss for the consolidated entity after providing for income tax amounted to $1,868,692 (31 December 2023: $4,634,590).

Please refer to the “Operating and Financial Review” in the Directors’ Report for a detailed explanation and analysis of the Group’s performance for the six months ended 31 December 2024.

3. Net tangible assets

Net tangible assets per ordinary security	Reporting period Cents 11.11	Previous period Cents 9.65

4. Control gained over entities

Not applicable.

5. Loss of control over entities

Not applicable.

6. Dividends

Current period

There were no dividends paid, recommended or declared during the current financial period.

Previous period

There were no dividends paid, recommended or declared during the previous financial period.

Mach7 Technologies Limited Appendix 4D Half-year report

7. Dividend reinvestment plans

Not applicable.

8. Details of associates and joint venture entities

Not applicable.

9. Foreign entities

Details of origin of accounting standards used in compiling the report:

Not applicable.

10. Audit qualification or review

Details of audit/review dispute or qualification (if any):

The financial statements were subject to a review by the auditors and the review report is attached as part of the Half Year Report.

11. Attachments

Details of attachments (if any):

The Half Year Report of Mach7 Technologies Limited for the half-year ended 31 December 2024 is attached.

12. Signed

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Signed _________

Date: 27 February 2025

Robert Bazzani Chairman Melbourne

Mach7 Technologies Limited ABN 26 007 817 192

Half Year Report - 31 December 2024

Mach7 Technologies Limited Directors' report 31 December 2024

The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity', ‘Group’ or ‘Mach7’) consisting of Mach7 Technologies Limited (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 31 December 2024. All amounts are in AUD.

Directors

The following persons were Directors of the Company during the whole of the financial half-year and up to the date of this report, unless otherwise stated:

Mr Robert Bazzani - Independent Non-Executive Chairman Mr Michael Lampron - Managing Director and Chief Executive Officer Mr Eliot Seigel, MD - Independent Non-Executive Director Ms Rebecca Thompson - Independent Non-Executive Director

Principal activities

The principal activity of the consolidated entity is the development and commercialisation of medical imaging and data management software solutions for global healthcare organisations.

Operating and financial review

The loss for the consolidated entity after providing for income tax amounted to $1,868,692 (31 December 2023: $4,634,590).

Financial position

At 31 December 2024, the Group reported net current assets of $20.09 million (30 June 2024: $18.81 million), which includes cash on hand of $23.60 million (30 June 2024: $26.17 million), trade and other receivables $6.99 million (30 June 2024: $3.55 million) and customer contract assets of $2.22 million (30 June 2024: $2.62 million).

Review of operations

Revenue from continuing operations

Revenue increased by 33% on previous corresponding period, $17.74 million revenue recognised (half-year 31 December 2023: $13.33 million).

The Group has reported $16.2 million in sales orders (total contract value) for this half-year of which 62% is related to Subscription and Maintenance and Support sales as customers increasingly opt for the Subscription rather than Capital model. The ongoing transition to a predominantly Subscription model will ultimately result in higher quality recurring revenue which will provide greater predictability and less volatility around future earnings and cash.

Group revenue has increased by $4.41 million (33%) compared to the previous corresponding period (“PCP”). Recurring revenue which is comprised of Subscription revenue and Maintenance and Support revenue (“ARR”) increased by 28% on PCP to $12.65 million for the half-year. The Group’s ARR recognised for the period represents 80% of operating expenditure (PCP: 72%). Software licence revenue which represents capital software sales orders that are generally contracted over a 5- year term was $3.54 million for the half-year, an increase of $1.81 million compared to PCP primarily due to capital software licence expansions and add-ons for existing customers. This reflects the Group’s focus on customer intimacy and the success of its “land and expand” strategy. Professional Services revenue for the half-year was $1.55 million, a 9% decrease compared to PCP due to FY24 being a large renewal year and those sales orders generally excluding professional services that would normally be recognised as revenue in the subsequent 12-18 months.

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Mach7 Technologies Limited Directors' report 31 December 2024

The table below provides a breakdown of revenue recognised by product/service:

Subscription revenue Maintenance and Support revenue Total recurring revenue Software Licence revenue Professional Service revenue**	31 December 2024 $ 6,333,962 6,313,855	31 December 2023 $ 3,993,550 5,900,389	Change Change $ % 2,340,412 59% 413,466 7% 2,753,878 28% 1,811,178 105% (158,052) (9%) 4,407,004 33%
	12,647,817	9,893,939
	3,542,148 1,549,352	1,730,970 1,707,404
	17,739,317	13,332,313

• Subscription and Software Licence revenue above comprises the total software licence revenue amounting to $9,876,110 as disclosed in note 5 to these financial statements.

** Represents combination of implementation & training services and migration services disclosed in note 5 to these financial statements.

Expenses from operations

Operating expenses increased by $2.07 million or 15%

The first six months of the fiscal year are generally the more expensive half for the Group due to the timing of trade shows and other operating expenses. During the half-year ended 31 December 2024, the Group made targeted investments in line with our three strategic pillars of cloud enablement, customer service, integration and interoperability. Notwithstanding this investment, operating expenses increased by only 15% reflecting careful cost management (half-year 31 December 2023: increased by 9%).

Operating expenditure (excluding Right-of-use lease liability interest expense, share-based payments expense, foreign exchange (losses)/gains and depreciation & amortisation) is presented in the following table:

Employment and related expenses General administration and office expenses Professional fees and corporate expenses Travel and related expenses Marketing expenses	31 December 2024 $ 12,279,437 1,361,367 985,111 632,536 552,392	31 December 2023 $ 10,664,048 1,139,801 710,523 715,971 508,294	Change Change $ % 1,615,389 15% 221,566 19% 274,588 39% (83,435) (12%) 44,098 9% 2,072,206 15%
	15,810,843	13,738,637

• excluding Right-of-use lease liability interest expense, share-based payments expense, foreign exchange (losses)/gains and depreciation & amortisation.

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Mach7 Technologies Limited Directors' report 31 December 2024

Profitability

NPATA* of $1.4 million (half-year 31 December 2023: ($1.25) million) which demonstrates that, in the absence of the amortisation of intangibles associated with the acquisition of Client Outlook, Mach7 had a profitable half year

The Group has reported EBITDA (on an adjusted basis)** of $0.81 million for the half-year (half-year 31 December 2023: ($1.57) million). The increase in EBITDA (adjusted) is primarily due to the increase in revenue (up 33% from PCP). This is set out in the table below:

Revenue from contracts with customers Cost of sales Gross Margin Gross Margin% Operating expenditure Net foreign exchange losses (realised) Other income/(expenses) (net) EBITDA Adjusted Interest income Net foreign exchange gains/(losses) (unrealised) Share-based payments expense (non-cash) Right-of-use lease liability interest expense Depreciation and amortisation (non-cash) Income tax benefit (non-cash) Loss for the year**	31 December 2024 $ 17,739,317 (1,039,262)	31 December 2023 $ 13,332,313 (1,058,772)	Change Change $ % 4,407,004 33% 19,510 (2%) 4,426,514 36% (2,072,206) 15% (7,678) 301% 44,626 (41%) (2,035,258) 15% 2,391,256 (152%) (41,895) (10%) 510,562 (296%) (118,229) 22% (29,654) 99% 80,662 (2%) (26,804) (3%) 2,765,898 (60%)
	16,700,055	12,273,541
	94% (15,810,843) (10,231) (63,813)	92% (13,738,637) (2,553) (108,439)
	(15,884,887)	(13,849,629)
	815,168 395,817 338,191 (662,400) (59,640) (3,565,723) 869,895	(1,576,088) 437,712 (172,371) (544,171) (29,986) (3,646,385) 896,699
	(1,868,692)	(4,634,590)

• NPATA (Net Profit After Tax and before Amortisation) is NPAT adjusted for amortisation of acquired intangibles

** Adjusted EBITDA (Earnings Before Interest, Tax, Depreciation, Amortisation) is EBITDA adjusted for unrealised foreign exchange (losses)/gains and non-cash item share-based payments expense.

Matters subsequent to the end of the financial half-year

On 30 January 2025 the Company announced an on-market share buy-back program with a maximum value of up to $5 million. The expected commencement date is 3 March 2025 for a period of up to 12 months.

No other matter or circumstance has arisen since 31 December 2024 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.

Contingent liability

The Group has no contingent liabilities as at 31 December 2024 (30 June 2024: Nil)

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Mach7 Technologies Limited Directors' report 31 December 2024

Outlook

Mach7 continues to be a leading innovator in the enterprise imaging space, with a portfolio of interoperable solutions that underpin the imaging strategies of both acute and non-acute care facilities. As the healthcare landscape evolves amidst an increasingly complex financial environment, consolidation among providers is reshaping the dynamics for imaging IT vendors. This trend presents unique challenges, particularly for vendors attempting to transition between outpatient and acute care markets and vice-versa.

Mach7 is well-positioned to capitalize on these shifts, benefiting from a robust install base across both acute and non-acute care sectors. This strategic positioning, combined with the global rise of enterprise imaging adoption, provides favorable market conditions for the Group. Moreover, with purchasing decisions now increasingly driven by C-suite executives—many of whom have longstanding relationships with Mach7 in the data management sector—these dynamics are conducive to a favourable sales environment.

In 2024, we observed a deceleration in M&A activity within the imaging IT space, with many players opting for partnerships rather than acquisitions. This trend is particularly advantageous for Mach7, given our independence as a technology provider without the constraints or conflicts associated with a modality business. Our strong partner ecosystem remains a core growth driver, highlighted most recently by our UnityVue offering.

Looking ahead, Mach7’s sales pipeline remains robust, reflecting growth opportunities across diverse regions, care settings, and product offerings. We remain confident in our ability to execute and deliver value to shareholders throughout FY25.

Mach7 reaffirms its FY25 guidance for 15-25% growth in Contracted Annual Recurring Revenue (CARR) and revenue on PCP and for OPEX growth to be less than revenue growth.

Significant changes in the state of affairs

There were no significant changes in the state of affairs of the Group during the financial half-year.

Auditor's independence declaration

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this Directors' Report.

This report is made in accordance with a resolution of Directors, pursuant to section 306(3)(a) of the Corporations Act 2001 (Cth).

On behalf of the Directors

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_________ Robert Bazzani Chairman

27 February 2025

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RSM Australia Partners

Level 27, 120 Collins Street Melbourne VIC 3000 PO Box 248 Collins Street West VIC 8007 T +61 (0) 3 9286 8000 F +61 (0) 3 9286 8199

www.rsm.com.au

AUDITOR’S INDEPENDENCE DECLARATION

As lead auditor for the review of the financial report of Mach7 Technologies Limited and its controlled entities for the half year ended 31 December 2024, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

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

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

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RSM AUSTRALIA PARTNERS

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M PARAMESWARAN Partner

Dated: 27 February 2025 Melbourne, Victoria

Page | 5

THE POWER OF BEING UNDERSTOOD AUDIT | TAX | CONSULTING

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RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction. RSM Australia Partners ABN 36 965 185 036

Liability limited by a scheme approved under Professional Standards Legislation

Mach7 Technologies Limited Contents 31 December 2024

Statement of profit or loss and other comprehensive income	7
Statement of financial position	8
Statement of changes in equity	9
Statement of cash flows	10
Notes to the financial statements	11
Directors' declaration	19
Independent auditor's review report to the members of Mach7 Technologies Limited	20

6

Mach7 Technologies Limited Statement of profit or loss and other comprehensive income For the half-year ended 31 December 2024

Note Revenue from contracts with customers 5 Other income Expenses Cost of sales Employment and related expenses Depreciation and amortisation Professional fees and corporate expenses General administration and office expenses Marketing expenses Travel and related expenses Share-based payments expense (non-cash) Right-of-use lease liability interest expense Net foreign exchange gains/(losses) Other expenses Loss before income tax benefit Income tax benefit Loss after income tax benefit for the half-year attributable to the owners of Mach7 Technologies Limited Other comprehensive income Items that may be reclassified subsequently to profit or loss Foreign currency translation Other comprehensive income for the half-year, net of tax Total comprehensive income for the half-year attributable to the owners of Mach7 Technologies Limited Basic and diluted earnings per share 6	Consolidated 31 December 2024 31 December 2023 $ $ 17,739,317 13,332,313 404,598 443,492 (1,039,262) (1,058,772) (12,279,437) (10,664,048) (3,565,723) (3,646,385) (985,111) (710,523) (1,361,367) (1,139,801) (552,392) (508,294) (632,536) (715,971) (662,400) (544,171) (59,640) (29,986) 327,960 (174,924) (72,594) (114,219)	Consolidated 31 December 2024 31 December 2023 $ $ 17,739,317 13,332,313 404,598 443,492 (1,039,262) (1,058,772) (12,279,437) (10,664,048) (3,565,723) (3,646,385) (985,111) (710,523) (1,361,367) (1,139,801) (552,392) (508,294) (632,536) (715,971) (662,400) (544,171) (59,640) (29,986) 327,960 (174,924) (72,594) (114,219)
	(2,738,587) 869,895	(5,531,289) 896,699
	(1,868,692) 1,519,151	(4,634,590) (1,146,456)
	1,519,151	(1,146,456)
	(349,541)	(5,781,046)
	Cents (0.8)	Cents (1.9)

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes

7

Mach7 Technologies Limited Statement of financial position As at 31 December 2024

Note Assets Current assets Cash and cash equivalents Trade and other receivables 7 Customer contract assets 8 Other assets Total current assets Non-current assets Customer contract assets 8 Right-of-use assets Property, plant and equipment Intangibles 9 Deferred tax asset Other assets Total non-current assets Total assets Liabilities Current liabilities Trade and other payables Customer contract liabilities 10 Lease liabilities Total current liabilities Non-current liabilities Lease liabilities Deferred tax liability Total non-current liabilities Total liabilities Net assets Equity Issued capital 11 Reserves Accumulated losses Total equity	Consolidated 31 December 2024 30 June 2024 $ $ 23,596,825 26,175,405 6,994,408 3,552,783 2,218,891 2,621,409 2,129,450 1,559,318	Consolidated 31 December 2024 30 June 2024 $ $ 23,596,825 26,175,405 6,994,408 3,552,783 2,218,891 2,621,409 2,129,450 1,559,318
	34,939,574	33,908,915
	4,217,935 1,149,097 1,326,699 25,471,428 4,321,136 842,676	4,549,814 1,204,648 711,630 27,781,577 4,087,764 786,991
	37,328,971	39,122,424
	72,268,545	73,031,339
	2,523,877 12,113,879 209,314	3,280,712 11,632,669 181,259
	14,847,070	15,094,640
	1,053,689 4,198,049	1,087,019 4,992,802
	5,251,738	6,079,821
	20,098,808	21,174,461
	52,169,737	51,856,878
	116,244,526 7,820,518 (71,895,307)	116,244,526 6,617,819 (71,005,467)
	52,169,737	51,856,878

The above statement of financial position should be read in conjunction with the accompanying notes

8

Mach7 Technologies Limited Statement of changes in equity For the half-year ended 31 December 2024

Consolidated Balance at 1 July 2023 Loss after income tax benefit for the half-year Other comprehensive income for the half-year, net of tax Total comprehensive income for the half-year Transactions with owners in their capacity as owners: Issue of shares upon exercise of options Share-based payments (note 16) Transfers upon exercise of options/rights Transfers upon lapse of options/rights Shares issued as remuneration Balance at 31 December 2023 Consolidated Balance at 1 July 2024 Loss after income tax benefit for the half-year Other comprehensive income for the half-year, net of tax Total comprehensive income for the half-year Transactions with owners in their capacity as owners: Share-based payments (note 16) Transfers upon lapse of options/rights Balance at 31 December 2024	Issued Capital $ 115,697,098 - -	Share Based Payment Reserves $ 3,923,857 - -	Foreign Exchange Translation Reserve $ 3,388,466 - (1,146,456)	Accumulated Losses $ (63,525,755) (4,634,590) -	Total Equity $ 59,483,666 (4,634,590) (1,146,456)
	- 174,233 - 118,540 - 234,000	- - 310,171 (118,540) (338,154) -	(1,146,456) - - - - -	(4,634,590) - - - 338,154 -	(5,781,046) 174,233 310,171 - - 234,000
	116,223,871	3,777,334	2,242,010	(67,822,191)	54,421,024
	Issued Capital $ 116,244,526 - -	Share Based Payment Reserves $ 4,347,733 - -	Foreign Exchange Translation Reserve $ 2,270,086 - 1,519,151	Accumulated Losses $ (71,005,467) (1,868,692) -	Total Equity $ 51,856,878 (1,868,692) 1,519,151
	- - -	- 662,400 (978,852)	1,519,151 - -	(1,868,692) - 978,852	(349,541) 662,400 -
	116,244,526	4,031,281	3,789,237	(71,895,307)	52,169,737

The above statement of changes in equity should be read in conjunction with the accompanying notes

9

Mach7 Technologies Limited Statement of cash flows For the half-year ended 31 December 2024

Note Cash flows from operating activities Receipts from customers (inclusive of GST) Payments to suppliers (inclusive of GST) Interest received Income taxes paid Net cash used in operating activities Cash flows from investing activities Payments for property, plant and equipment Payments for intangibles 9 Net cash used in investing activities Cash flows from financing activities Proceeds from issue of shares Repayment of lease liabilities Net cash (used in)/from financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the financial half-year Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at the end of the financial half-year	Consolidated 31 December 2024 31 December 2023 $ $ 15,919,139 15,481,106 (18,583,858) (15,766,904)	Consolidated 31 December 2024 31 December 2023 $ $ 15,919,139 15,481,106 (18,583,858) (15,766,904)
	(2,664,719) 265,079 (51,621)	(285,798) 226,044 (133,241)
	(2,451,261)	(192,995)
	(525,493) (524,480)	(63,483) -
	(1,049,973)	(63,483)
	- (79,181)	174,233 (106,465)
	(79,181)	67,768
	(3,580,415) 26,175,405 1,001,835	(188,710) 23,394,568 (476,711)
	23,596,825	22,729,147

The above statement of cash flows should be read in conjunction with the accompanying notes

10

Mach7 Technologies Limited Notes to the financial statements 31 December 2024

Note 1. Corporate information

The financial report of Mach7 Technologies Limited (the “Company” or the “Parent”) for the half-year ended 31 December 2024 was authorised for issue in accordance with a resolution of the Directors on 27 February 2025 .

Mach7 Technologies Limited is a company limited by shares incorporated and domiciled in Australia whose shares are publicly traded on the Australian Securities Exchange (ASX:M7T). The nature of the operations and principal activities of Mach7 Technologies Limited and its consolidated entities (the “Group”) are described in the Directors’ Report.

Note 2. Material accounting policy information

These general purpose financial statements for the interim half-year reporting period ended 31 December 2024 have been prepared in accordance with Australian Accounting Standard AASB 134 'Interim Financial Reporting' and the Corporations Act 2001 (Cth), as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'.

These general purpose financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2024 and any public announcements made by the Company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated.

New or amended Accounting Standards and Interpretations adopted

The Company has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

Note 3. Restatement of comparatives

Reclassification

There were changes in the presentation of the comparative balances in the statement of profit or loss and other comprehensive income for the half-year ended 31 December 2023, due to the presentation of commission expenses and distributor and licence fees as cost of sales.

The impact of the change in the comparative for the half-year ended 31 December 2023 is as below:

Cost of sales Distributor and licence fees Employment and related expenses	31 December 2023 - 660,667 11,062,153	Reclass 1,058,772 (660,667) (398,105)	31 December 2023 Restated 1,058,772 - 10,664,048
	11,722,820	-	11,722,820

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Mach7 Technologies Limited Notes to the financial statements 31 December 2024

Note 4. Operating segments

Description of segments and principal activities

Mach7 Technologies is a global provider of enterprise imaging solutions for healthcare organisations, predominantly throughout the North America, Asia Pacific, and the Middle East region. The Group’s performance is monitored and reported for one main segment, which is enterprise imaging. In addition, revenue is monitored at a regional and product/services level. This information is presented in Note 5.

Profit or Loss

The Group’s profit and loss is managed as a whole and is the same as what is presented in the statement of financial performance and other comprehensive income. In addition, management and the directors monitor Gross Margins, Earnings Before Interest, Tax and Depreciation (EBITDA), and EBITDA adjusted for non-cash items. This is presented below:

Revenue from contracts with customers Cost of sales Operating expenditure Net foreign exchange losses (realised) Other income/(expenses) (net) EBITDA – before the following items Share-based payments expense (non-cash) Net foreign exchange gains/(losses) (unrealised) EBITDA Depreciation and amortisation Right-of-use lease liability interest expense Interest income Income tax benefit Net loss after tax	Consolidated 31 December 2024 31 December 2023 $ $ 17,739,317 13,332,313 (1,039,262) (1,058,772) (15,810,843) (13,738,637) (10,231) (2,553) (63,813) (108,439)	Consolidated 31 December 2024 31 December 2023 $ $ 17,739,317 13,332,313 (1,039,262) (1,058,772) (15,810,843) (13,738,637) (10,231) (2,553) (63,813) (108,439)
	815,168	(1,576,088)
	(662,400) 338,191	(544,171) (172,371)
	490,959 (3,565,723) (59,640) 395,817 869,895	(2,292,630) (3,646,385) (29,986) 437,712 896,699
	(1,868,692)	(4,634,590)

Segment assets and liabilities

The Group’s chief decision makers review and monitor assets and liabilities as a whole.

Geographical non-current tangible assets*

North America Asia	Consolidated 31 December 2024 30 June 2024 $ $ 11,445,118 10,937,608 412,426 403,239 11,857,544 11,340,847	Consolidated 31 December 2024 30 June 2024 $ $ 11,445,118 10,937,608 412,426 403,239 11,857,544 11,340,847
		11,340,847

*Non-current assets excluding the intangible assets of the Group.

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Mach7 Technologies Limited Notes to the financial statements 31 December 2024

Note 5. Revenue from contracts with customers

Disaggregation of revenue from contracts with customers

Mach7 is a global provider of medical imaging software solutions. Every software sale, or provision of services, is subject to a software licence agreement, statement of work and/or order form. The Group derives revenue from the transfer of goods and services over time and at a point in time in the following major product lines and geographical regions:

Software Licence Revenue (major segment) Professional Services Revenue: - implementation & training services - migration services Maintenance and Support (recurring revenue) Geographical segment revenues North America Asia Pacific Middle East Europe and other regions Timing of revenue recognition* Revenue recognised at a point in time Revenue recognised over time	Consolidated 31 December 2024 31 December 2023 $ $ 9,876,110 5,724,520 1,325,957 1,489,303 223,395 218,101 6,313,855 5,900,389	Consolidated 31 December 2024 31 December 2023 $ $ 9,876,110 5,724,520 1,325,957 1,489,303 223,395 218,101 6,313,855 5,900,389
	17,739,317	13,332,313
	15,422,033 1,640,362 430,162 246,760	10,717,823 1,724,121 421,603 468,766
	17,739,317	13,332,313
	3,542,148 14,197,169	1,730,970 11,601,343
	17,739,317	13,332,313

*Software Licence Revenue is comprised of Subscription Revenue (annual recurring revenue) and Capital Software Licence Revenue (recognised upfront upon delivery of software and is recurring at the end of each term, which is normally 5 years).

Note 6. Earnings per share

Basic earnings per share (“EPS”) is calculated by dividing the net loss for the half-year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the half-year. The income and share data used in the calculations of basic and diluted EPS is as follows:

Basic and diluted earnings per share for loss Loss after income tax attributable to the owners of Mach7 Technologies Limited Weighted average number of ordinary shares used in calculating basic and diluted earnings per share Basic and diluted earnings per share	Consolidated 31 December 2024 31 December 2023 $ $ (1,868,692) (4,634,590)	Consolidated 31 December 2024 31 December 2023 $ $ (1,868,692) (4,634,590)
	Number 241,241,047 Cents (0.8)	Number 241,191,047 Cents (1.9)

Number of share options and performance rights not included in the diluted earnings per share calculation as they are antidilutive: 13,672,999 (31 December 2023: 12,208,517).

13

Mach7 Technologies Limited Notes to the financial statements 31 December 2024

Note 7. Trade and other receivables

Trade receivables Interest receivable Sales tax receivable Other receivables	Consolidated 31 December 2024 30 June 2024 $ $ 6,768,542 3,410,057	Consolidated 31 December 2024 30 June 2024 $ $ 6,768,542 3,410,057
	74,028 43,807	102,152 36,896
	117,835	139,048
	108,031	3,678
	6,994,408	3,552,783

Note 8. Customer contract assets

Contract assets - current Contract assets - non-current	Consolidated 31 December 2024 30 June 2024 $ $ 2,218,891 2,621,409 4,217,935 4,549,814	Consolidated 31 December 2024 30 June 2024 $ $ 2,218,891 2,621,409 4,217,935 4,549,814
	6,436,826	7,171,223

Customer contract assets (or accrued revenue) represents fees which have been recognised as revenue which are yet to be invoiced to the customer. The customer is invoiced when certain contract milestones have been met. This can fluctuate from period to period, as these balances are impacted by the timing of when contracted sales occur, performance obligations are met and the payment milestones that are specified within each contract. The carrying values are assumed to approximate the fair values for these balances.

Under the accounting standards, contracts in which payment by the customer and performance by the Group occur at significantly different times will need to be assessed to determine whether the contract contains a significant financing component. In the FY23 reporting period, the Group identified that its customer contract with Akumin contains a significant financing component due to the performance obligation in relation to the delivery of the capital licence being completed in December 2022 but payment for the capital software licence occurring over a 10-year period. In determining the promised amount of consideration adjusted for the significant financing component, the Group used a discount rate that would be reflected in a separate financing transaction between the Group and Akumin at contract inception which takes into account the credit characteristics of Akumin. The difference between the contract value and the capital software licence revenue recognised at contract inception will unwind over the 10-year contract term as interest income in the statement of profit or loss and other comprehensive income. The contract asset recognised in relation to the Akumin contract is split between current and non-current based on the invoicing schedule in the contract.

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Mach7 Technologies Limited Notes to the financial statements 31 December 2024

Note 9. Intangibles

Goodwill - at cost Patents and trademarks - at cost Less: Accumulated amortisation Customer contracts - at cost Less: Accumulated amortisation Software - at cost Less: Accumulated amortisation Brand Names - at cost Less: Accumulated amortisation	Consolidated 31 December 2024 30 June 2024 $ $ 4,264,540 4,187,982	Consolidated 31 December 2024 30 June 2024 $ $ 4,264,540 4,187,982
	193,805 (117,127)	399,322 (325,002)
	76,678	74,320
	11,598,313 (11,301,573)	11,548,522 (10,984,733)
	296,740	563,789
	59,029,305 (42,715,315)	57,496,457 (38,979,316)
	16,313,990	18,517,141
	6,077,454 (1,557,974)	5,996,319 (1,557,974)
	4,519,480	4,438,345
	25,471,428	27,781,577

Reconciliations

Reconciliations of the written down values at the beginning and end of the current financial half-year are set out below:

Consolidated Balance at 1 July 2024 Additions Exchange differences Amortisation expense Balance at 31 December 2024	Patents $ 74,320 - 5,091 (2,733)	Customer Contracts $ 563,789 - 5,257 (272,306)	Brand Names $ 4,438,345 - 81,135 -	Software $ 18,517,141 524,480 282,687 (3,010,318)	Goodwill $ 4,187,982 - 76,558 -	Total $ 27,781,577 524,480 450,728 (3,285,357)
	76,678	296,740	4,519,480	16,313,990	4,264,540	25,471,428

Note 10. Customer contract liabilities

Maintenance and Support Revenue received in advance Professional Services Revenue received in advance Subscription Revenue received in advance Capital Software Licence Revenue received in advance	Consolidated 31 December 2024 30 June 2024 $ $ 5,704,172 6,499,073 3,117,007 2,018,610 3,228,476 3,017,842 64,224 97,144	Consolidated 31 December 2024 30 June 2024 $ $ 5,704,172 6,499,073 3,117,007 2,018,610 3,228,476 3,017,842 64,224 97,144
	12,113,879	11,632,669

15

Mach7 Technologies Limited Notes to the financial statements 31 December 2024

Note 10. Customer contract liabilities (continued)

Customer contract liabilities (or deferred revenue) represents cash amounts that have been collected from customers that will be recognised as revenue in a future period. Revenue is recognised:

• at a point in time when Capital Software Licences are delivered.

• over a period of time when Professional Services are performed.

• over a period of time when Maintenance and Support services are performed.

• for Subscription over the subscription period upon the customer achieving First Productive Use.

The carrying values are assumed to approximate the fair values for these balances. Revenue received in advance is expected to fluctuate from year to year, as the timing of sales orders, contract payment terms and revenue recognition milestones will impact this balance.

Note 11. Issued capital

Ordinary shares - fully paid	31 December 2024 Shares 241,241,047	Consolidated 30 June 2024 31 December 2024 Shares $ 241,241,047 116,244,526	30 June 2024 $ 116,244,526

Ordinary shares

Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company does not have a limited amount of authorised capital.

On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.

Share buy-back

There is no current on-market share buy-back.

Note 12. Dividends

There were no dividends paid, recommended or declared during the current or previous financial half-year.

Note 13. Related party transactions

Parent entity

Mach7 Technologies Limited is the parent entity.

Transactions with related parties

There were no transactions with related parties during the current and previous financial half-year.

Receivable from and payable to related parties

There were no trade receivables from or trade payables to related parties at the current and previous reporting date.

Loans to/from related parties

There were no loans to or from related parties at the current and previous reporting date.

Note 14. Events after the reporting period

On 30 January 2025 the Company announced an on-market share buy-back program with a maximum value of up to $5 million. The expected commencement date is 3 March 2025 for a period of up to 12 months.

No other matter or circumstance has arisen since 31 December 2024 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.

16

Mach7 Technologies Limited Notes to the financial statements 31 December 2024

Note 15. Contingent liabilities

The Group has no contingent liabilities as at 31 December 2024 (30 June 2024: Nil)

Note 16. Share-based payments

Share-based payments expense during the period is $662,400 (31 December 2023: $544,171) which relates to options/performance rights/shares issued to Directors, KMP and other employees of the company.

Summary of options granted and lapsed during the half-year ended 31 December 2024 are as below:

Unlisted Options

Set out below are summaries of options granted under the plan:

31 December 2024

Exercise Grant date Expiry date price 11/10/2019 11/10/2024 $0.680 18/11/2019 18/11/2024 $0.820 18/11/2019 18/11/2024 $0.800 18/11/2019 18/11/2024 $0.950 18/11/2019 18/11/2024 $1.100 01/12/2020 30/11/2025 $1.400 03/02/2021 30/01/2025 $1.480 03/02/2021 30/06/2025 $1.480 10/09/2021 30/01/2025 $0.980 10/09/2021 31/08/2026 $0.980 10/09/2021 21/07/2024 $0.980 11/11/2021 11/11/2026 $0.910 11/11/2021 31/12/2025 $1.380 20/01/2022 20/01/2027 $0.782 24/02/2022 24/02/2027 $0.731 12/12/2022 12/12/2027 $0.610 01/01/2023 01/01/2028 $0.570 01/05/2023 01/05/2028 $0.636 01/07/2023 01/07/2028 $0.582 14/08/2023 14/08/2028 $0.800 01/09/2023 01/09/2028 $0.760 16/11/2023 16/11/2028 $0.710 01/12/2023 01/12/2028 $0.725 18/12/2023 01/10/2024 $0.730 18/12/2023 31/12/2024 $0.730 18/12/2023 31/01/2025 $0.730 18/12/2023 18/12/2028 $0.730 15/01/2024 15/01/2029 $0.732 01/03/2024 01/03/2029 $0.679 19/08/2024 19/08/2029 $0.591 16/09/2024 16/09/2029 $0.540 18/11/2024 18/11/2029 $0.380	Balance at the start of the half-year 881,666 285,000 250,000 250,000 250,000 73,334 40,000 1,400,000 40,000 2,200,000 26,666 89,999 150,000 200,000 250,000 50,000 200,000 200,000 400,000 50,000 30,000 225,000 50,000 100,000 33,334 16,666 2,185,000 200,000 200,000 - - -	Granted - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 100,000 200,000 2,900,000	Exercised - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	Expired/ forfeited/ other (881,666) (285,000) (250,000) (250,000) (250,000) - - - - - (26,666) - - - - - - - - - - - - (100,000) (33,334) - - - - - - -	Balance at the end of the half-year - - - - - 73,334 40,000 1,400,000 40,000 2,200,000 - 89,999 150,000 200,000 250,000 50,000 200,000 200,000 400,000 50,000 30,000 225,000 50,000 - - 16,666 2,185,000 200,000 200,000 100,000 200,000 2,900,000
	10,326,665	3,200,000	-	(2,076,666)	11,449,999

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Mach7 Technologies Limited Notes to the financial statements 31 December 2024

Note 16. Share-based payments (continued)

For the options granted during the current financial half-year, the valuation model inputs used to determine the fair value at the grant date, are as follows:

		Share price	Exercise	Expected	Dividend	Risk-free	Fair value
Grant date	Expiry date	at grant date	price	volatility	yield	interest rate	at grant date
19/08/2024	19/08/2029	$0.595	$0.591	59.00%	-	3.60%	$0.318
16/09/2024	16/09/2029	$0.535	$0.540	58.00%	-	3.45%	$0.281
18/11/2024	18/11/2029	$0.365	$0.380	57.00%	-	4.22%	$0.190

Performance rights

The Company has on issue 2,223,000 (June 2024: 1,825,185) performance rights of which 723,000 expires on 30 September 2025 and 700,000 expires on 30 September 2026 and 800,000 expires on 30 September 2027.

Summaries of performances rights is as below:

Outstanding at the beginning of the financial year Granted Expired/Forfeited	31 December 2024 1,825,185 800,000 (402,185)	30 June 2024 1,503,299 700,000 (378,114)
	2,223,000	1,825,185

During the period, the consolidated entity issued 800,000 performance rights to Mr Michael Lampron with various vesting conditions relating to service period and performance hurdles. The fair value of the performance rights was determined using the Monte Carlo Simulation using the following inputs:

	Tranche 1	Tranche 2	Tranche 3	Tranche 4
Number of performance rights	200,000	200,000	200,000	200,000
granted
Grant date	28 November 2024 28 November 2024 28 November 2024 28 November 2024
Expiry date	30 September 2027 30 September 2027 30 September 2027 30 September 2027
Weighted average share price at
date of grant ($)	$0.38	$0.38	$0.38	$0.38
Weighted average exercise price ($)	-	-	-	-
Weighted average volatility %	53.95%	53.95%	53.95%	53.95%
Weighted average risk-free rate %	3.972%	3.972%	3.972%	3.972%
Vesting conditions with 30 June
2027 target date	Note 1	Note 1	Note 1	Note 1
Fair value per performance right $	0.1469	0.3436	0.3436	0.3436
Fair value of performance right $	$29,371	$68,722	$68,722	$68,722

Note 1- Vesting Conditions:

Tranche		Vesting condition
Tranche	1	Market-based vesting condition linked to Total Shareholder Return.
Tranche	2	Company performance vesting condition linked to KLAS Ranking.
Tranche	3	Company performance vesting condition linked to Annual Recurring Revenue.
Tranche	4	Company performance vesting condition linked to EBITDA Margin.

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Mach7 Technologies Limited Directors' declaration 31 December 2024

In the directors' opinion:

• the attached financial statements and notes comply with the Corporations Act 2001 (Cth), Australian Accounting Standard AASB 134 'Interim Financial Reporting', the Corporations Regulations 2001 and other mandatory professional reporting requirements;

• the attached financial statements and notes give a true and fair view of the Company's financial position as at 31 December 2024 and of its performance for the financial half-year ended on that date; and

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

Signed in accordance with a resolution of directors made pursuant to section 303(5)(a) of the Corporations Act 2001 (Cth).

On behalf of the Directors

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_________ Robert Bazzani Chairman

27 February 2025

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RSM Australia Partners Level 27, 120 Collins Street Melbourne VIC 3000 PO Box 248 Collins Street West VIC 8007 T +61 (0) 3 9286 8000 F +61 (0) 3 9286 8199 www.rsm.com.au

INDEPENDENT AUDITOR’S REVIEW REPORT

To the Members of Mach7 Technologies Limited

Conclusion

We have reviewed the accompanying half-year financial report of Mach7 Technologies Limited (“Company”) and its controlled entities (“Group”) which comprises the consolidated statement of financial position as at 31 December 2024, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of material accounting policies and other explanatory information, and the directors’ declaration of the Group at the half-year end.

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 Mach7 Technologies Limited is not in accordance with the Corporations Act 2001 including:

• (a) giving a true and fair view of the Group’s financial position as at 31 December 2024 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 .

Basis for Conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity. Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001 , which has been given to the directors of Mach7 Technologies Limited, would be in the same terms if given to the directors as at the time of this auditor’s report.

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THE POWER OF BEING UNDERSTOOD AUDIT | TAX | CONSULTING

RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction. RSM Australia Partners ABN 36 965 185 036

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Liability limited by a scheme approved under Professional Standards Legislation

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Directors' Responsibility for the Half-Year Financial Report

The directors of the Mach7 Technologies Limited 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 internal 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.

Auditor’s Responsibility for the Review of the Financial Report

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 half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Group’s financial position as at 31 December 2024 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 .

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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RSM AUSTRALIA PARTNERS

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M PARAMESWARAN Partner

Dated: 27 February 2025 Melbourne, Victoria

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