When presenting to angel investors, it is important to understand the terms commonly used when evaluating an investment:

Definition of treasury stock method

Treasury Stock Method is a method by which options, warrants, and their equivalents are included in earnings-per-share computations. Treasury stock method assumes that the options and/or warrants are exercised at the beginning of the year (or issue date if later) and the proceeds are used to repurchase outstanding shares of common stock.