Appendix 4D Half Year Report

31 December 2012 Name of entity: ABN Reference:

HEALTHLINX LIMITED 88 098 640 362

1. Results for announcement to the market

Current period Previous corresponding

period

% Change Amount of change

2012 2011 $AUD $AUD $AUD

Key Information

Revenues from ordinary activities 22,067 177,343 Down 87.6% Down 155,276

Profit/(Loss) from ordinary activities after tax attributable to members

(2,775,578) (825,997) Down 236% Down 1,949,581

Net Profit/(Loss) for the period attributable to members

(2,775,578) (825,997) Down 236% Down 1,949,581

It is not proposed to pay a dividend for the year

2. NTA Backing

Current period Previous corresponding period

Net tangible asset (liability) backing per ordinary security $(0.0008) $(0.0002)

3. Commentary on Financial Results

During the period of July to December 2012, HealthLinx achieved major milestones in respect of its

Second Clinical Study.

The final results from the second, multinational, multi-centre Phase 2 biomarker trial that assessed a

total of 1007 patient samples were announced in November 2012. The use of OvPlex™ was compared

to CA125 in determining disease status. Independent statistical analysis performed by Emphron

Informatics Pty Ltd, using the McNemar’s test, found that OvPlex™ was statistically significantly better

(p value of 0.027) than CA125 in overall diagnostic performance in 1007 patients. OvPlex™ correctly

diagnosed 862 of the trial participants compared to CA125 that correctly diagnosed 839.

More importantly, OvPlex™ was found to have statistically significantly better specificity than CA125

alone (p value of 0.006), thus, indicating OvPlex™ is more accurate at identifying patients without

ovarian cancer. Of the 630 patients found to not have ovarian cancer (controls and benign patients)

OvPlex™ incorrectly diagnosed 53 of these as compared to 68 incorrectly diagnosed with CA125. This

information may assist clinicians to make more informed decisions regarding the management of women

found to have benign conditions.

The study included patient samples sourced across multiple sites in Australia, Singapore and the United

Kingdom under Human Research and Ethics Committee approval.

These results are now being utilised to define a new OvPlex algorithm for implementation for all

OvPlex™ tests in Q2 2013.

HealthLinx has completed analysis of data arising from the clinical study in South Korea and reported to

the clinical investigators in South Korea on the results. Next steps in Korea are on hold pending

completion of commercial transactions described below.

For P

erso

nal U

se O

nly

For P

erso

nal U

se O

nly For

per

sona

l use

onl

y

HealthLinx engaged Brandwood Biomedical Consultants in Australia to assist with the registration

requirements for Australia under the Therapeutic Goods Administration and CPC Clinical Research in

the USA to assist with the Food and Drug Administration requirements to register OvPlex™ Both

programs were suspended when the company entered into commercial negotiations with Mane Cancer

Diagnostics.

HealthLinx entered into a Heads of Agreement with Mane Cancer Diagnostics in August 2012 to sell a

number of HealthLinx assets, including OvPlex™ to Mane Cancer Diagnostics. Due diligence and

financing issues prevented the final sale agreement from being executed by the agreed date of 24

December 2012. The expiry of the agreement allows HealthLinx to explore alternative opportunities to

access the US market whilst continuing discussions with Mane Cancer Diagnostics on a revised

program.

The company has continued to pursue patent and trademark prosecution in key territories for the

OvPlex, AGR-2 and IgY assets.

Notwithstanding the above, the Directors draw attention to Note 6 of the Financial Statement below.

The Directors have decided to be conservative and write down the value of its intangible assets at 31

December 2012.

HealthLinx has rationalised its R&D activities and closed its in-house laboratories. Any future research

and development activities will be conducted under contract with third party providers.

4. Preliminary Half Year Report – Financial Details

Refer to the attached half year financial report.

Greg Rice 28 February 2013

Chairman

For P

erso

nal U

se O

nly

For P

erso

nal U

se O

nly For

per

sona

l use

onl

y

Healthlinx Limited ABN: 88 098 640 352

Interim Financial Statements

For the Half Year Ended 31 December 2012

For P

erso

nal U

se O

nly

For P

erso

nal U

se O

nly For

per

sona

l use

onl

y

HealthLinx Limited ABN: 88 098 640 352

Page 2

Financial Statements Contents Page Directors’ Report 3 Consolidated Statement of Comprehensive Income 5 Consolidated Statement of Financial Position 6 Consolidated Statement of Changes In Equity 7 Consolidated Cash Flow Statement 8 Notes to Financial Statements 9 Directors' Declaration 15 Auditor’s Independence Declaration 16 Independent Auditor’s Report 17

The interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2012 and any public announcements made by HealthLinx Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2011.

For P

erso

nal U

se O

nly

For P

erso

nal U

se O

nly For

per

sona

l use

onl

y

HealthLinx Limited ABN: 88 098 640 352

Page 3

Directors’ Report

Your directors present their report on the consolidated entity consisting of Healthlinx Limited and its controlled entity for the half year ended 31 December 2012.

1. General information

Directors

The following persons were directors in office at any time during the half year and up to the date of this report: Greg Rice Chairman Nick Gatsios Independent Non-Executive Director John Evans Independent Non-Executive Director Resigned 31 December

2012 Mal Lucas-Smith Independent Non-Executive Director Appointed 31 December

2012 Directors have been in office since the start of the financial period to the date of this report unless otherwise stated.

2. Review of Operations

During the period of July to December 2012, HealthLinx achieved major milestones in respect of its Second Clinical Study.

The final results from the second, multinational, multi-centre Phase 2 biomarker trial that assessed a total of 1007 patient samples were announced in November 2012. The use of OvPlex™ was compared to CA125 in determining disease status. Independent statistical analysis performed by Emphron Informatics Pty Ltd, using the McNemar’s test, found that OvPlex™ was statistically significantly better (p value of 0.027) than CA125 in overall diagnostic performance in 1007 patients. OvPlex™ correctly diagnosed 862 of the trial participants compared to CA125 that correctly diagnosed 839.

More importantly, OvPlex™ was found to have statistically significantly better specificity than CA125 alone (p value of 0.006), thus, indicating OvPlex™ is more accurate at identifying patients without ovarian cancer. Of the 630 patients found to not have ovarian cancer (controls and benign patients) OvPlex™ incorrectly diagnosed 53 of these as compared to 68 incorrectly diagnosed with CA125. This information may assist clinicians to make more informed decisions regarding the management of women found to have benign conditions.

The study included patient samples sourced across multiple sites in Australia, Singapore and the United Kingdom under Human Research and Ethics Committee approval.

These results are now being utilised to define a new OvPlex algorithm for implementation for all OvPlex tests in Q2 2013.

HealthLinx has completed analysis of data arising from the clinical study in South Korea and reported to the clinical investigators in South Korea on the results. Next steps in Korea are on hold pending completion of commercial transactions described below.

HealthLinx engaged Brandwood Biomedical Consultants in Australia to assist with the registration requirements for Australia under the Therapeutic Goods Administration and CPC Clinical Research in the USA to assist with the Food and Drug Administration requirements to register OvPlex. Both programs were suspended when the company entered into commercial negotiations with Mane Cancer Diagnostics.

HealthLinx entered into a Heads of Agreement with Mane Cancer Diagnostics in August 2012 to sell a number of HealthLinx assets, including OvPlex to Mane Cancer Diagnostics. Due diligence and financing issues prevented the final sale agreement from being executed by the agreed date of 24 December 2012. The expiry of the agreement allows HealthLinx to explore alternative opportunities to access the US market whilst continuing discussions with Mane Cancer Diagnostics on a revised program.

The company has continued to pursue patent and trademark prosecution in key territories for the OvPlex, AGR-2 and IgY assets.

Notwithstanding the above, the Directors draw attention to Note 6 of the Financial Statement below. The Directors have decided to be conservative and write down the value of its intangible assets at 31

For P

erso

nal U

se O

nly

For P

erso

nal U

se O

nly For

per

sona

l use

onl

y

HealthLinx Limited ABN: 88 098 640 352

Page 4

Directors’ Report (Cont.)

December 2012

HealthLinx has rationalised its R&D activities and closed its in-house laboratories. Any future research and development activities will be conducted under contract with third party providers.

3. Auditor’s Independence Declaration

The lead auditor’s independence declaration under section 307C of the Corporations Act 2001 is set out on page 16 for the half year ended 31 December 2012. Signed in accordance with a resolution of the Board of Directors:

Greg Rice Chairman Dated this 28 February 2013

Melbourne

For P

erso

nal U

se O

nly

For P

erso

nal U

se O

nly For

per

sona

l use

onl

y

HealthLinx Limited ABN: 88 098 640 352

Page 5

Statement of Comprehensive Income For the Half Year Ended 31 December 2012

Consolidated

Note

31 Dec 2012

$

31 Dec 2011

$

Revenue 22,067 177,343

Other income 64,707 3,000

Total revenue and other income 86,774 180,343

Employee benefits expense (231,675) (554,438)

Depreciation, amortisation and impairments (2,500,323) (57,807)

Scientific consumables (10,679) (26,370)

Consulting and professional fees (208,009) (279,556)

Other expenses 4 (306,397) (422,451)

Finance expense (7,640) (2,127)

Loss before income tax (3,177,949) (1,162,406)

Income tax benefit 402,371 336,409

Net loss for the period (2,775,578) (825,997)

Total comprehensive income/(loss) for the period (2,775,578) (825,997)

Basic and diluted loss per share

(cents per share) from continuing operations:

Overall operations

(2.3c)

($0.004)

$(0.007)

The above income statements should be read in conjunction with the accompanying notes

For P

erso

nal U

se O

nly

For P

erso

nal U

se O

nly For

per

sona

l use

onl

y

HealthLinx Limited ABN: 88 098 640 352

Page 6

Statement of Financial Position 31 December 2012

Consolidated

Note

31 Dec 2012

$

30 June 2012

$

ASSETS

Current assets

Cash and cash equivalents 39,736 123,802

Trade and other receivables 54,569 86,039

Total current assets 94,305 209,841

Non-current assets

Property, plant and equipment 4,033 44,786

Intangible assets 6 729,734 3,094,315

Total non-current assets 733,767 3,139,101

TOTAL ASSETS 828,072 3,348,942

LIABILITIES

Current liabilities

Trade and other payables 440,009 596,271

Short-term borrowings 159,745 217,078

Derivative Liability 27,156 51,687

Short-term provisions 29,732 56,606

Total current liabilities 656,642 921,642

Non-current liabilities

Deferred tax liabilities 10,313 11,963

Other long-term provisions - 3,642

Total non-current liabilities 10,313 15,605

TOTAL LIABILITIES 666,955 937,247

NET ASSETS 161,117 2,411,695

EQUITY

Equity attributable to owners of the parent:

Contributed equity 5 15,357,516 14,832,516

Reserves – Share option reserve 403,204 403,204

Accumulated losses (15,599,603) (12,824,025)

TOTAL EQUITY 161,117 2,411,695

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

For P

erso

nal U

se O

nly

For P

erso

nal U

se O

nly For

per

sona

l use

onl

y

HealthLinx Limited ABN: 88 098 640 352

Page 7

Statement of Changes in Equity

For the Half Year Ended 31 December 2012

Consolidated

31 December 2011

Contributed Equity

$

Share Option

Reserve $

Accumulated Losses

$

Total

$

Balance at 1 July 2011 12,959,800 402,244 (10,856,453) 2,505,591

Losses for the year - - (825,997) (825,997)

Total comprehensive income/(loss) for the year - - (825,997) (825,997)

Contributions of equity, net of transaction costs 991,218 - - 991,218

Share based payments as consideration of services rendered 109,500 - - 109,500

Employee share options - - - -

Transactions with equity holders in their capacity as equity holders 1,100,718 - - 1,100,718

Balance at 31 December 2011 14,060,518 402,244 (11,682,450) 2,780,312

Consolidated

31 December 2012

Contributed Equity

$

Share Option

Reserve $

Accumulated Losses

$

Total

$

Balance at 1 July 2012 14,832,516 403,204 (12,824,025) 2,411,695

Losses for the year - - (2,775,578) (2,775,578)

Total comprehensive income/(loss) for the year - - (2,775,578) (2,775,578)

Contributions of equity, net of transaction costs 525,000 - - 525,000

Share based payments as consideration of services rendered - - - -

Employee share options - - - -

Transactions with equity holders in their capacity as equity holders 525,000 - - 525,000

Balance at 31 December 2012 15,357,516 403,204 (15,599,603) 161,117

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

For P

erso

nal U

se O

nly

For P

erso

nal U

se O

nly For

per

sona

l use

onl

y

HealthLinx Limited ABN: 88 098 640 352

Page 8

Cash Flow Statement For the Half Year Ended 31 December 2012 Consolidated

31 Dec 2012

$

31 Dec 2011

$

Cash flows from operating activities:

Receipts from customers including GST 32,576 177,025

Payments to suppliers and employees including GST (980,043) (1,370,825)

Research & development tax concessions received 400,721 -

Interest received 2,086 6,738

Interest paid (9,434) (2,127)

Net cash provided by (used in) operating activities (554,094) (1,189,189)

Cash flows from investing activities:

Proceeds from sale of plant and equipment 9,285 -

Receipt of government grants 50,000 125,000

Payments for intangibles (56,988) (112,827)

Net cash provided by (used in) investing activities 2,297 12,173

Cash flows from financing activities:

Proceeds from issue of share capital - 1,009,958

Proceeds from borrowings 467,731 160,520

Payment of share issue costs - (40,939)

Net cash provided by (used in) financing activities 467,731 1,129,539

Net increase (decreases) in cash held (84,066) (47,477)

Cash at beginning of the half year 123,802 110,239

Cash at end of the half year 39,736 62,762

The above cash flow statements should be read in conjunction with the accompanying notes

For P

erso

nal U

se O

nly

For P

erso

nal U

se O

nly For

per

sona

l use

onl

y

HealthLinx Limited ABN: 88 098 640 352

Page 9

Notes to the Financial Statements For the Half Year Ended 31 December 2012

1. Statement of Significant Accounting Policies

(a) Basis of Preparation

This half year consolidated financial report is a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standard AASB 134: Interim Financial Reporting. The interim financial report is intended to provide users with an update on the latest annual financial statements of Healthlinx Limited and controlled entities (the Group). As such it does not contain information that represents relatively insignificant changes occurring during the year within the Group. This half year consolidated financial report does not include all the notes normally included in an annual financial report. It is therefore recommended that this financial report be read in conjunction with the annual financial statements of the Group for the year ended 30 June 2012, together with any public announcements made by Healthlinx Limited 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.

(b) Going Concern

As a developing business the Group has experienced half year operating losses of $3,177,949 (of which $2,414,394 is an impairment charge against intangible assets) and net cash outflows from operating activities of $579,084, and has a deficiency in net tangible assets of $232,110. On the 28 February 2013 the Directors and La Jolla Cove Investors Inc. (“La Jolla Cove”) have drafted a mutual agreement to terminate the funding facility without penalty. The directors are currently in negotiations with financiers to replace La Jolla Cove, which are anticipated to provide a minimum drawdown facility of up to $1m. The continuing viability of the Group and its ability to continue as a going concern is dependent upon the Group being successful in its continuing efforts in accessing additional sources of capital and/or revenue and/or the realisation of intangible assets. As a result there is significant uncertainty whether the Group will continue as a going concern and, therefore, whether it will realise its assets and settle its liabilities and commitments in the normal course of business and at the amounts stated in the financial report. However, the Directors believe that the Group will be able to access sufficient sources of funds and, accordingly, have prepared the financial report on a going concern basis. Accordingly, no adjustments have been made to the financial report relating to the recoverability and classification of the asset carrying amounts or the amount and classification of liabilities that might be necessary should the Group not continue as a going concern.

Significant matters considered by the Directors in determining that it is appropriate for the financial report to be prepared on a going concern basis include:

It is anticipated that sales of Ovplex will commencing is Spain and India during the second half of the 2012/13 financial year;

The Directors expect to obtain sufficient funding through an alternate financier to replace La Jolla Cove;

Historical attempts by the Group to raise further equity funding or other sources of finance have generally been successful.

For P

erso

nal U

se O

nly

For P

erso

nal U

se O

nly For

per

sona

l use

onl

y

HealthLinx Limited ABN: 88 098 640 352

Page 10

Notes to the Financial Statements For the Half Year Ended 31 December 2012

2. Events Subsequent to Reporting Date

Please refer to Note 1(b) for significant events subsequent to balance date.

3. Operating Segments

Under AASB 8 Operating Segments, segment information is presented using a 'management approach'; that is, segment information is provided on the same basis as information used for internal reporting purposes by the chief operating decision maker (executive management committee that makes strategic decisions).

(a) Description of Segments

Management has determined the operating segments based on reports reviewed by the board for making strategic decisions. The board monitors the business based on product and geographic factors and have identified three business segments: Cryptomics, Diagnostics, and Peptide Research. Each of these segments involves scientific research and development in relation to intellectual property within the platform as described by its name. This has resulted in the scientific departments of Diagnostics, Cryptomics, and Peptide Research being aggregated into one reportable segment.

(b) Information About Reportable Segments

Aggregated Scientific

Departments bb

For the 6 Months ended 31 Dec

2012 $

For the 6 Months ended 31 Dec

2011 $

External Segment Revenues 22,067 174,030

Segment Expenses (368,487) (375,351)

Total (346,420) (201,321)

For P

erso

nal U

se O

nly

For P

erso

nal U

se O

nly For

per

sona

l use

onl

y

HealthLinx Limited ABN: 88 098 640 352

Page 11

Notes to the Financial Statements For the Half Year Ended 31 December 2012

3. Operating Segments (continued)

(c) Reconciliation of reportable Segment Revenue, Profit/(Loss), Assets & Liabilities and Other

Material Items

For the 6 Months ended 31 Dec

2012 $

For the 6 Months ended 31 Dec

2011 $

Revenues

Total revenue from reportable segments (aggregated) 21,775 174,030

Finance revenue 292 3,313

Other revenue 15,122 -

Total 37,189 177,343

Profit or loss

Total profit/(loss) for reportable segments (aggregated) (346,420) (201,301)

Other profit/(loss)

Unallocated amounts:

Finance expense (7,640) (2,127)

Depreciation, amortisation and impairments (2,500,323) (57,807)

Share based payments - (109,500)

Other corporate expenses (323,566) (791,671)

Consolidated profit/(loss) before income tax (3,177,949) (1,162,406)

4. Other Expenses

Consolidated bb

For the 6 Months ended 31 Dec

2012 $

For the 6 Months ended 31 Dec

2011 $

Accounting fees 75,569 8,798

Auditors remuneration - parent entity 9,464 26,196

Computer expenses 9,390 9,080

Permits, licenses and fees 69,560 85,951

Insurance 22,157 21,350

Lease rentals on operating lease 33,346 46,729

Travel - domestic 4,778 11,956

Travel - overseas 140 55,637

Other operating expenses 81,993 156,754

Total 306,397 422,451

For P

erso

nal U

se O

nly

For P

erso

nal U

se O

nly For

per

sona

l use

onl

y

HealthLinx Limited ABN: 88 098 640 352

Page 12

Notes to the Financial Statements For the Half Year Ended 31 December 2012

5. Equity Securities Issued

(a) Contributed equity

Share capital

Consolidated

For the 6 Months ended 31 Dec

2012 $

For the 6 Months ended 31 Dec

2011 $

Contributed equity at beginning of the period 14,832,516 12,959,800

Shares issued 525,000 1,141,655

Share issue expenses - (40,937)

Contributed equity at the end of the period 15,357,516 14,060,518

Ordinary Shares

For the 6 Months ended 31 Dec 2012

Number

For the 6 Months ended 31 Dec

2011

Number

Contributed equity at beginning of the period 380,104,803 170,352,212

Shares issued 315,748,909 83,470,851

Contributed equity at the end of the period 695,853,712 253,823,063

(b) Unlisted options

For the 6 Months ended 31 Dec 2012

Number

For the 6 Months ended 31 Dec

2011

Number

Options at the beginning of the period 36,448,028 15,624,355

Options issued during the period - 31,052,809

Options lapsed / forfeited during the period - (200,000)

Options exercised during the period - -

Total unlisted options at the end of the period 36,448,028 46,477,164

(c) Listed options

For the 6 Months ended 31 Dec 2012

Number

For the 6 Months ended 31 Dec

2011

Number

Options at the beginning of the period 14,750,000 14,750,000

Options issued during the period - -

Options lapsed / forfeited during the period - -

Options exercised during the period - -

Total listed options at the end of the period 14,750,000 14,750,000

For P

erso

nal U

se O

nly

For P

erso

nal U

se O

nly For

per

sona

l use

onl

y

HealthLinx Limited ABN: 88 098 640 352

Page 13

Notes to the Financial Statements For the Half Year Ended 31 December 2012

6. Intangible assets

Goodwill and capitalised development costs related to OvPlex and IGY totalling $2,414,394 have been written off during the reporting period.

Whilst the directors believe that the company will realise a value in excess of the current carrying value for the goodwill and capitalised development costs through either sale or use, due to the inherent uncertainly in the future cash flows, the directors have decided to be conservative and write down the value of this asset for accounting purposes.

The directors believe OvPlex and IgY have a value in excess of the revised carrying value for the following reasons:

the company anticipates significant growth sales and market share in Singapore, Malaysia, India and Spain where they current have distribution agreements in place;

current distribution agreements provide for expansion into additional Asian and European markets;

the company continues to focus on US market opportunities; and

potential for further income arising from successful patent prosecution events

Consolidated bbbbb

31 Dec 2012 $

30 June 2012 $

Goodwill

Cost 1,887,220 1,887,220

Accumulated impairment losses (1,518,466) -

Net carrying value 368,754 1,887,220

Intellectual property

Cost 778,285 778,285

Accumulated amortisation and impairment (741,909) (736,409)

Net carrying value 36,376 41,876

Capitalised development costs

Cost 1,575,627 1,477,470

Accumulated amortisation and impairment (1,251,023) (312,251)

Net carrying value 324,604 1,165,219

Total Intangibles 729,734 3,094,315

For P

erso

nal U

se O

nly

For P

erso

nal U

se O

nly For

per

sona

l use

onl

y

HealthLinx Limited ABN: 88 098 640 352

Page 14

Notes to the Financial Statements For the Half Year Ended 31 December 2012

6. Intangible assets (cont.) (a) Reconciliation Detailed Table

Consolidated

Intellectual Property

$

Goodwill

$

Capitalised Devt Costs

$

Total

$

Year ended 30 June 2012

Opening balance 52,876 1,887,220 957,521 2,897,617

Additions - - 292,921 292,921

Impairment charges - - - -

Amortisation (11,000) - (85,223) (96,223)

Balance at 30 June 2012 41,876 1,887,220 1,165,219 3,094,315

Half Year ended 31 December 2012

Opening balance 41,876 1,887,220 1,165,219 3,094,315

Additions - - 98,157 98,157

Impairment charges - (1,518,466) (895,928) (2,414,394)

Amortisation (5,500) - (42,844) (48,344)

Balance at 31 December 2012 36,376 368,754 324,604 729,734

Goodwill is allocated to the Company’s cash generating units at the lowest level for which there are separately identifiable cash inflows which are largely independent of cash flows from other CGUs. Goodwill has arisen from historical acquisition which included the assets of Ovplex and IgY, it is not practical to allocate goodwill between the two CGUs and therefore the cash flows of both CGUs are used to assess the recoverability of the goodwill intangible asset.

Capitalised development expenditure relates solely to the Ovplex CGU and the cash flows of the Ovplex CGU have been used to assess the recoverability of this intangible.

7. Provisions The company has provided for long service leave for Mr Nick Gatsios of $29,732, who resigned as Managing Director on 30 June 2012. Mr Gatsios has remained as a Non-Executive Director to the date of this Half Year Report. The company is in the process of obtaining legal advice as to whether Mr Gatsios’ continuing service as a Non-Executive Director constitutes continuing service for long service leave requirements under the Long Service Leave Act (Vic).

8. Commitments

There are no commitments at 31 December 2012.

9. Contingent liabilities and Contingent Assets

There are no contingent assets or contingent liabilities at 31 December 2012.

For P

erso

nal U

se O

nly

For P

erso

nal U

se O

nly For

per

sona

l use

onl

y

HealthLinx Limited ABN: 88 098 640 352

Page 15

Directors’ Declaration The Directors of Healthlinx Limited declare that:

1. The Interim financial statements and notes, as set out on Pages 5 to 14, are in accordance with the Corporations Act 2001 and;

(a) Comply with Accounting Standards and the Corporations Regulations 2001; and, (b) Give a true and fair view of the consolidated entity’s financial position as at 31 December 2012 and

of its performance for the half-year ended on that date;

2. In the directors opinion, there are reasonable grounds to believe that Healthlinx Limited will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the directors by:

Greg Rice Chairman Dated: 28 February 2013 Melbourne

For P

erso

nal U

se O

nly

For P

erso

nal U

se O

nly For

per

sona

l use

onl

y

Grant Thornton Audit Pty Ltd ACN 130 913 594 The Rialto, Level 30 525 Collins St Melbourne Victoria 3000 GPO Box 4736 Melbourne Victoria 3001 T +61 3 8320 2222 F +61 3 8320 2200 E info.vic@au.gt.com W www.grantthornton.com.au

Grant Thornton Audit Pty Ltd ABN 91 130 913 594 ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389 Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia.

Liability limited by a scheme approved under Professional Standards Legislation

Auditor’s Independence Declaration

To The Directors of HealthLinx Limited

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead

auditor for the review of HealthLinx Limited for the half-year ended 31 December 2012, I

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

a no contraventions of the auditor independence requirements of the Corporations Act

2001 in relation to the review; and

b no contraventions of any applicable code of professional conduct in relation to the

review.

GRANT THORNTON AUDIT PTY LTD

Duane Rogers

Partner - Audit & Assurance

Melbourne, 28 February 2013

For P

erso

nal U

se O

nly For

per

sona

l use

onl

y

Grant Thornton Audit Pty Ltd ACN 130 913 594 The Rialto, Level 30 525 Collins St Melbourne Victoria 3000 GPO Box 4736 Melbourne Victoria 3001 T +61 3 8320 2222 F +61 3 8320 2200 E info.vic@au.gt.com W www.grantthornton.com.au

Grant Thornton Audit Pty Ltd ABN 91 130 913 594 ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389 Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia.

Liability limited by a scheme approved under Professional Standards Legislation

Independent Auditor’s Review Report

To the Members of HealthLinx Limited

We have reviewed the accompanying half-year financial report of HealthLinx Limited

(“Company”), which comprises the consolidated financial statements being the statement of

financial position as at 31 December 2012, and the statement of comprehensive income,

statement of changes in equity and statement of cash flows for the half-year ended on that

date, notes comprising a statement or description of accounting policies, other explanatory

information and the directors’ declaration of the consolidated entity, comprising both the

Company and the entities it controlled at the half-year’s end or from time to time during the

half-year..

Directors’ responsibility for the half-year financial report

The directors of HealthLinx 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 controls 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

Our responsibility is to express a conclusion on the consolidated half-year financial report

based on our review. We conducted our review in accordance with the 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 HealthLinx Limited consolidated entity’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 HealthLinx Limited, ASRE 2410 requires that we

comply with the ethical requirements relevant to the audit of the annual financial report.

For P

erso

nal U

se O

nly For

per

sona

l use

onl

y

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.

Independence

In conducting our review, we complied with the independence requirements of the

Corporations Act 2001.

Conclusion

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 HealthLinx Limited is not in

accordance with the Corporations Act 2001, including:

a giving a true and fair view of the consolidated entity’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.

Material uncertainty regarding continuation as a going concern

Without qualifying our opinion, we draw attention to Note 1 to the half-year financial report

which indicates uncertainties regarding the going concern assumption, including successful

negotiations to obtain additional financing. The uncertainty around the group’s ability to

obtain sufficient financing indicates the existence of a material uncertainty which may cast

significant doubt about the company’s ability to continue as a going concern and therefore,

the company may be unable to realise its assets and discharge its liabilities in the normal

course of business, and at the amounts stated in the financial report.

GRANT THORNTON AUDIT PTY LTD

Duane Rogers

Partner - Audit & Assurance

Melbourne, 28 February 2013

For P

erso

nal U

se O

nly For

per

sona

l use

onl

y