If I had to speculate and GUESS, based on information I know now and if I give the CTO the benefit of the doubt and assume he was competent (contrary to what I saw), I would say they were having trouble canceling the contract with the third party consulting firm we were hired through. I also think they might have been quietly moving their operations out of state to another infrastructure originally belonging to another company they bought or merged with that had their own IT team and wanted us kept out of the loop. Hiring us might have been a way to reduce our compensation and get us under an NDA regarding the move. When hiring us failed they were able to re-negotiate the terms of the contract with the consulting firm for half of what it was. Again, just a guess.