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PowerGUI wraps PS1 to EXE - How does it work ?

I have lot of PowerShell Script which I want wrapped as an executable using PowerGUI (as PowerGUI Pro is free now).

PowerGUI lets you do that easy.....




After this it gives you option to name the exe , .NET version to target, Hide/Show console window in the back-end, Password protect your source etc.




I thought maybe putting password will protect my source and was curious how does it really works. 

But it works a bit differently then I thought. When you share this with your colleagues then in order for them to use this exe you need to share the password above.




In this case I have a simple script which creates a simple UI and asks for a Computer name to reboot.




When I give a wrong machine name it throws me an error and if you see the highlighted entry it points to a PS1 .
If I go to the path in the error message I can see the source lying around:




Now I haven't put any hard-coded credentials on it (BTW that's a bad practice ).
Though PowerGUI wraps the PS1 as an exe, but it eventually puts the PS1 in a temporary location and executes it.

Now I can hide the back console window just as a precaution but my source PS1 is still lying around in the system.

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