"Even if there is a deal with us, why would any company pay anything close to a dollar when the share price is 3.5 to 4 cents?"

Exactly my thoughts. Buyouts often carry a premiun but it would be unrealistic to expect anything in that range. I don't think 40 cents is reachable either. That would be a 1000% premium from the current price. If one got a buyout of double a SP, it would be considered a super deal. In our case we're talking about 8 cents. Not exactly Torrey Pines territory. :>)