Even though Axis records canned ONE DAY RUST, the band is still bound by contract (therefore unable to release anything else on another label, even though Axis has "doubts" about their future without the now-departed Miller).
They sent demos of the MY LITTLE BASTARD SOUL material to Axis, and they're thrilled, perhaps inspired by the success of another trio (Nirvana), Axis sends the band to a real studio to record a full-length.