If Hale tried to buy 2M shares on the open market he would probably have had to pay more than $1. If the company had floated 2M new shares it would have gotten less than $1. On balance, not really all that bad a deal. The question is, with an extra $2 million in the bank, what will they do with it? It's little more than one quarter's R&D expense, so no great products will come from there. There's no worthwhile acquisition you can make with $2 million. Hale can force more frugality, making sure the bleeding stops, but then what?