fiatschmiat,
You are wise to only invest what you feel comfortable with. This job of making a public company profitable is tough and the people at the top of MPHASE know that very well. They fight it every day of their lives. Having a great product with great potential won't do you any good if you don't get support.
Getting a million shares for $5,000 sounds like a heck of a bargain to me. These guys get stock option, meaning that they can buy below market. Even Martin Smiley bought at market which tells me that he considers it quite a bargain.
Hoping for positive news in the near future.
jrs