More important, since the bottom line continued to show the impact on gain from the revaluation of derivatives, was that the company improved operating income. Last year’s earnings were entirely a result of that $630,083 revaluation gain. In the first quarter of 2011, that derivative income dropped to $262,788. However, first-quarter operating income was $234,887, compared to a year-earlier operating loss of $195,285. During the last few months, Trey retired the debt that had been a drag on its prospects by getting its backers to take a pretty steep discount in paying off the debt. This month, it executed a 1-for-1,811 reverse stock split, reduced the number of authorized shares of its Class A Common Stock from 10 billion to 750 million, changed the rate for converting Class B stock to Class A and cancelled its Class C stock. Additionally, the company has concluded its accounting personnel lack requisite knowledge and GAAP and SEC reporting requirements and it has insufficient written policies and procedures to meet those requirements. Trey also had one person performing all accounting accounting-related duties, meaning there was no segregation of these duties. Trey said it is rectifying this, but believes its financial statements are reliable.