It also introduced a compensation plan more tied to performance. Now, SWK is the only source of revenue for Trey, whose sales dropped to $7.41 million down 4.2 percent from $7.72 million, while losing $1.54 million, compared to just under $1.5 million in 2008. It cut its operating loss by more than half, ending at $252,121 for 2009, down from $577,693 in 2008 as gross margins rose to 41 percent from 35.4 percent. Trey has been using equity to pay off things like salaries and to pay down debt. The company continues to be hampered by obligations the management struck for a former subsidiary, iVoice. It has also accrued $195,905 in liquidated damages relating to default of a 2005 registration rights agreement with its primary backer YA Global Investments. During the year, it issued $515,671 stock to YA Global for conversion of $179,2000 on principal on convertible debentures and it was  the $336,471 difference  which caused much of the increase in 2009’s loss.