Wierd Pass Play

[BulldogMcC]

This play actually happened, I was the U so I was at the LOS watching the blocking but had a perfect view of the QB in the background.

A is 1st and 10 from A's 45. A11 takes the snap under center and drops back to A's 35 and looks to pass. The 5 eligible A players run downfield with the 5 ineligible A players blocking at A's 40 against 4 B rushers. After a few moments, the pass protection breaks down and A11 retreats to A's 25 where he is running sideways and about to be tackled. Without looking and apparently to avoid taking the loss of yardage, he side arms/chucks the ball forward towards the 5 ineligible A players still blocking around A's 40. A77, an ineligible A player catches the ball at A's 40 where he is tackled. At the time of the pass all the eligible A players are 20 yards or more beyond the NZ.

What penalty(s) do you have and what options does the WH give to B?

What we did and what I think we should have done later.