Not correct , They are not insiders they are based on the company calls "friendly debt"
From the last 10 QSB
"During the quarter ended September 30, 2007, a total of $369,850 in debt was extinguished through the issuance of a total of 27,878,569 shares of common stock, of which 17,128,569 shares were restricted"
369.850/27.878.569 = 0,0132
Sequoia converted too some millions cheaper.