Basically they are giving it away for $200,000 once the bond is...

Basically they are giving it away for $200,000 once the bond is accounted for. The only good part of the deal is the royalty. Even, the bond money will only be received in monthly payments over an extended period at a variable rate (dependent on operating margin) and so not available for immediate investment/application. They escape from all liabilities to the state and avoid holding costs which they say are substantial but not quantified.
The deal speaks of desperation but I guess it is better than no sale at all.