Continued in Setup II
Round 1: CO 4 sts, join to work in the round.
Stitch Substitutions:
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1-To-4 inc, (k1, yo, k1) in next st = 2-to-7 gather.
(K1, yo, k1) in next st, 1-to-4 inc = 2-to-7 gather.
BO = At the beginning of the round, slip st with yarn in the back.
CO = At the end of the round, knit slipped st. (This shifts the round transition.)
Shown with a cast-on count of 2 stitches.