Let's write a program that computers the fibonacci sequence. First we must define the base cases of the function. for the sake of simplicity, n <= 0 returns zero.

The base case for n <= 0:
    if n <= 0 then
        return 0
    end

The base case for 1:
    if n == 1 then
        return 1
    end

Now for a recursive case. For this implementation, we will stick with the original formula rather than optimizing it.

The recursive case for the fibonacci sequence:
    return fib(n - 1) + fib(n - 2)

Finally, lets assemble this into a Lua function.

The fibonacci function:
    local function fib(n)
        @ The base case for n <= 0
        @ The base case for 1
        @ The recursive case for the fibonacci sequence
    end 

our program:
    @ The fibonacci function
    print(fib(10))

do:
    compile

source:
    @ our program

---
do:
    %action
---
%action

---
dereference
from:
    %reference
%reference:
    %code
---
dereference
from:
    %reference
spent:
    %code
compiled code:
    %code

---
dereference
from:
    %reference
---
restore dereference
from:
    %reference

---
restore dereference
from:
    %reference
spent:
    %code
---
restore dereference
from:
    %reference
%reference:
    %code

---
restore dereference
from:
    %reference
---
compile


---
compile
source:
    @ %reference
---
dereference
from:
    %reference
needs another pass:
    yes

---
compile
source:
    %code
---
compile
compiled code:
    %code

---
compile
needs another pass:
    yes
---
next pass

---
compile
---
compilation finished

---
next pass
compiled code:
    %code
---
next pass
source:
    %code

---
next pass
---
compile

---
compilation finished
compiled code:
    %code
---
compilation finished
out:
    %code

---
compilation finished
---
print code

---
print code
out:
    %tuple
---
print code
@print:
    %tuple