Alright, I'm glad that I went to our accounting guys. This should clarify a lot for you: It's not a "stock loss". It's a stock transaction in exchange for consulting fees (so its a stock loss, but not in the traditional sense). So, while its an expense, it isn't a true expense. The expense is based upon the price of the stock at the time of the transaction. This happens frequently in small cap companies. Instead of paying for services that would be much more than our working capital on hand, we arrange a stock issuance to pay for the services.  So, when you're calculating things like "insurance costs" these things aren't calculated the same way. Consider it like credit, but not really.

The best way to determine the actual hard costs to the company would be to look at the P&L statements. On those, you'll see that there was "stock as compensation" losses (3-4mm), but all the non-stock costs were lower. The non-stock as compensation costs would be the number to look at. I hope that makes sense. TECO essentially only needs ~500k in revenues from oil/drilling contracts to get to cash flow positive.

This is from Sean.

Sean Douglass
Investor Relations
Tel: 504-754-6927
investors@treatyenergy.com