In addition, regarding orders and backlog, there can be no assurance that the company will recognize revenue related to its purchase orders and other commitments in any particular period or at all, because some of these purchase orders and other commitments are subject to contingencies that are outside of our control. In addition, these orders and commitments maybe revised, modified, or canceled either by their express terms, as a result of negotiations or by project changes or delays.
With that, I’d like to turn the call over to Mike Kaminski, President and Chief Executive Officer of Stereotaxis.
Good morning everyone, and thank you for joining us to review our first quarter 2012 performance. With me today is our Chief Financial Officer, Sam Duggan. Following our prepared remarks, we will open up the call for your questions.
As we outlined in our last call, our first priority in 2012 was to improve the balance sheet in order to keep our strategic plan moving forward. On Monday we announced that we’ve entered in to a definitive agreement to raise an additional 18.5 million through two financing transactions, consisting of 8.5 million subordinated debt, and a 10 million in common stock type transaction.
Upon closing of these transactions, we also expect to extend our credit agreement with Silicon Valley Bank through March 2013. Sam will review the terms in more details in his remarks.
In an effort to maximize this capital raised, we are implementing a cost reduction plan focused on growing top line and position as to achieve breakeven as quickly as possible. The plan will further reduce operating expenses not directly impacting top line growth by 15% to 20% by the fourth quarter of this year.
With a little operating spend and continued revenue growth through the new Epoch platform, we believe we can accelerate EBITDA breakeven. I would discuss some specifics of the plan following our review of the first quarter results.