Redwood Group International (RDWD)

[Harleyman]

My favorite part...

CONSULTING EXPENSES
From March 31, 2009 to 2010, Consulting Expenses increased from $281,533 to
$558,272, representing an increase of $276,739. The Board of Directors has
authorized us to reserve 30% of all equity securities received from each transaction
closed for bonuses to be paid to any of our contributing consultants. These securities
have been reserved and are marked-to-market using the stock price as of the last day
of the quarter. As these securities have yet to be issued to the consultants, to the
extent that the stock price rises or falls, consulting expenses increase or decrease.
These fluctuations are expected to continue until these securities are issued. The
increase in consulting expenses is directly related to an increase in stock price for
securities held as bonus securities to our consultants.