They knew full well that it would create a large drop in the SP and consequently a huge amount more dilution when a CR is done. The reverse split should have been done in conjunction with the CR. Whats done is done now though. SP will probably just continue lower each month as they burn nearly a million a month and the sales are only 500K a month and unlikely to increase much in the near term. They need around 7 times current sales level to break even. You just work out the the number of years it has to continue to be funded and multiply that by 10 mil and you get what they will have to raise before they break even, so lets say it takes them 3 years that is 30 mil and the current market cap is 9.43mil then you see the level of dilution likely. Also now officially trading at less than cash value.
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