expects to improve cash position

Instruments Ltd (ASX code: BZI) today announced the completion of
the financial commitment to its first series of clinical trials and
commented on implications of this for the cash position of the company.
Incoming CEO Mr Richard Smith said, "BrainZ has reached a
critical point in its evolution as a medical device manufacturer.
"Almost three years ago we started a 'seeding program' aimed at
outcomes-focused clinical research on our product.
"This is a crucial element of our development in terms of
developing core data that establish the credentials of our product, and
drive adoption of the technology by healthcare professionals.
"As is the case for all developing device companies, this
research comes at a high cost, but lays a crucial foundation for
growth."
"BrainZ is now entering a phase transition in its development,
in that its financial commitment to these programs is now scaling back.
"At the same time, the data outputs from these programs are
becoming available to the company and will yield benefits for five to
six years," he said.

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"The recent milestone in our seeding programme is significant
for two reasons.
"First, we expect our outlay of cash associated with these
initial clinical trials to be reduced by over $0.7 million annually.
"Secondly, the data will begin to be published over the next
year and will continue over the next few years.
"Some projects will lead on to additional research supported
largely through government grants and other external sources.
"We believe these data contribute significantly to the existing
evidence base supporting bedside monitoring of infants at risk of brain
injury and offers significant competitive advantage to BrainZ."
Mr Smith added, "These savings, coupled with other efficiency
measures which I have identified and begun to implement, are expected to
improve the company's overall finances and cash position.
"We expect the company's total cash outlay to be reduced by
approximately $1.3 million annually.
"At the same time, we are reprioritising projects to focus on
improving our product's fit to the US market."