[BamaFan121s]

OK, I'll tell you my honest opinion...please don't take it the wrong way. If I were you:

First, examine what you have here:
1) Dexter is a rescue. As far as what people look for when breeding, there is alot you don't know about him--his age, genetic background, medical history. Even though he may look full bred, you really cannot be certain of that...of for Lily for that matter as you obviously had a run in with a very shady breeder.
2) Your female does not fall within the standard for the breed...she is 10 pounds, correct?
3) They are unregistered.

Not ideal, by any means, but the best thing you can do is be honest with anyone that is interested. Tell them upfront they are not registered and the truth behind the situation. I know there are registries out there that will register them anyway, but IMO, what would be the point? I would think that would be presenting something false to any perspective owner. YES! They should not be used as breeding stock...because you don't know anything about the line of the parents, you in turn do not know the background of the pups. In NO way should that be repeated. Also, 'telling' new owners they should be pets only is not going to guarantee that they will not be bred. I understand not wanting to just give them away...you will still be out of pocket money and I question anyone out to get a free/cheap pup of ANY kind. I would think though that given the situation, you should try your best just to break even on cost (which is hard in any case) and consider yourself lucky if you do.
Accidents happen...maybe they 'shouldn't' happen, but they do. Being upfront and telling everyone just what you've said here is the only thing you can do, really.
The best thing you can worry about now is making sure your girl is getting the care that she needs and preparing yourself as best you can in the time you have.